Jeremy Siegel: “Fairly Valued” Market Presents Two Big Risks

A recent article in Advisor Perspectives summarizes an interview with Wharton professor, Wisdom Tree senior investment strategy advisor and author Jeremy Siegel. Here are highlights from Siegel’s comments: Valuations: While last year Siegel said that the market’s fair value was about 17- to 18-times earnings, he said “I’d notch that up a little bit because interest rates are much lower than they were a year ago, particularly long rates, which are so important for equity… Read More

Jeremy Siegel Says Stock Market Slips are not Cause for Panic

In a podcast  on the Knowledge@Wharton radio show, finance professor Jeremy Siegel shared insights on the markets and the key drivers for change in sentiment. On a macro level, Siegel recommended that long-term investors “not panic at the stock market’s recent dips,” and predicted that equities would be “either flat or up by as much as 10% for all of 2018.” Here are some highlights: Siegel sees recent corrections as normal, adding, “I thought the… Read More

Jeremy Siegel on the Business Cycle

In a recent Advisor Perspectives article, a guest contributor offered a synopsis of a chapter from finance professor Jeremy Siegel’s 1994 book, Stocks for the Long Run—one that the author describes as “surely one of the best books on investing of all time.” The article explains that the chapter (number 15, entitled “Stocks and the Business Cycle”) “makes so much sense, yet it’s rarely discussed in the financial literature. It’s as if Siegel discovered a… Read More

Longtime Bull Jeremy Siegel Predicts a Milestone

In a recent CNBC interview, Wharton finance professor Jeremy Siegel–who predicted the Dow’s rise to 24,000—said he thinks the index will hit 25,000 adding that the milestone will be spurred by tax reform. [Note: the DJIA closed yesterday at 24,504.] “The corporate tax cut is particularly what I think the market wants,” Siegel said, adding, “That could boost earnings by 8 percent or so, and that’s a positive for stocks.” That said, he argued that… Read More

Jeremy Siegel is Bullish on Stocks

Wharton finance professor Jeremy Siegel remains bullish notwithstanding others’ concerns regarding “the market’s potential reliance on Trump’s tax- and regulation-cutting agenda,” according to a recent CNBC interview. “What has driven the market further up has been the great earnings season that we had in the first quarter,” says Siegel, adding, “It was the best guidance, forward guidance, that I had heard in many, many years.” This, along with global growth, greater stability in China, a… Read More

Siegel Says Stay in Stocks

As the Dow continues to climb amidst conjecture by some around a possible market decline, Wharton professor Jeremy Siegel thinks investors shouldn’t avoid buying stocks, according to a CNBC article posted last week. The author of Stocks for the Long Run says that when investors “anticipate a significant drop—say, 20 percent—they typically do not consider the fact that the stock market may in fact rise between current levels and a large decline.” Even if they… Read More

Siegel Still Believes in Stocks for the Long Run

Twenty-two years ago, Wharton professor Jeremy Siegel asserted in his book Stocks for the Long Run that equities were the best long-term investment and that buying and holding through volatility is the best approach for investors. This according to an article in last week’s Wall Street Journal. Siegel’s research, which covered more than two centuries, showed that stocks generated 6.7% in annual returns (inflation-adjusted) compared to 3.6% for U.S. government bonds. He expects the post-election… Read More

Siegel Says Rally Has Legs

The stock market boost fueled by the Trump victory will probably continue through December, says Wharton professor Jeremy Siegel in a recent interview with CNBC. “When you have all the small stocks, large stocks, even tech stocks—which we know have some challenges—joining with it, I don’t think this is something that ends tomorrow.” At the time of the interview, Siegel predicted that the Dow could reach 20,000 (it now stands at 19,300). Siegel says that… Read More

Is Shiller’s CAPE as Scary as it Seems?

In the 1990’s, economists Robert Shiller and John Campbell created a valuation metric called the “cyclically adjusted price-earnings” ratio, or CAPE. A Wall Street Journal article from earlier this month examines whether this metric might be sending a false signal that the market is overheated. The CAPE ratio values shares based on 10 years rather than one year of earnings which, the article explains, “smooths out periods like just prior to the housing bust, when… Read More

The “Wizard of Wharton” Looks Ahead

In a recent interview with ThinkAdvisor, finance professor (and senior investment strategy advisor to Wisdom Tree Investments)  Jeremy Siegel shares his view on a host of issues affecting current market conditions: Presidential election: The stock market would be “a little more comfortable with a Clinton victory, but they don’t love her at all.” With regard to a Trump win, “In the short run, there would be some negatives. But in the long run, I don’t… Read More