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Jeremy Siegel: Never Seen Stock Valuation This Compelling

October 05, 2010
guruek

guruek

80 followers
Jeremy Siegel, a professor of finance at the University of Pennsylvania's Wharton School, talks to Bloomberg about the outlook for the U.S. stock market. Siegel also discusses corporate earnings and Federal Reserve monetary policy. Timothy Mulholland, managing partner at China-America Capital Co., also speaks.

Siegel sees S&P 500 earning goes over $94 in 2011, surpassing that of 2007, when the market was at 1570. He sees stock valuation the most compelling since 1950s, given the long bond rate at 2 to 3 %. He thinks the earnings nowadays are of better quality than 2007 when financial companies took a lion share of the S&P 500 earnings.

The bullish professor sees the market goes up another 8 to 10% from this point on.



(Source: Bloomberg)


I want see Siegel debating John Hussman.


Rating: 1.3/5 (3 votes)

Comments

superguru
Superguru - 4 years ago
"The bullish professor sees the market goes up another 8 to 10% from this point on."

Yes, very compelling indeed,

I would be compelled to sell if a perma bull like Siegel sees only 8-10% more upside.

tonysf
Tonysf - 4 years ago
Who is this Tim Mulholland? I have never heard of the company where he worked. The market is driven by liquidity? Really? Small investors are pretty much given up stock investing and low trading volume. Other than in the bond and emerging market, I simply don't see the liquidity. What is he talking about?
surfpro
Surfpro - 4 years ago
I urge anyone considering buying stocks at this point not to. SELL YOUR STOCKS NOW! The market is overvalued. Of course individual stocks can move against the market but when there is a market panic most everything goes down. Only hold individual stock positions if you have a huge margin of safety. If you are widely diversified and long definitely sell. Panic now while everyone else is assuming The Fed can fix the economy. Bernanke will only make things worse. The market may go higher in the short term but gravity will set in soon. Stocks are overvalued and we are on the brink of another economic downturn. Jeremy Siegel does not have a good track record. He probably has tenure and will not lose his job if he is wrong. Go to cash and buy silver on the dips.
tkervin
Tkervin - 4 years ago
If you have a block of unused time that you wish to squander.......spend time "guessing" stock market directions. Since the market can only go up, down, or stay the same.....you will be right from time to time. Don't of course expect to make any money at this exercise over the long term....:-)
abecfilms
Abecfilms - 4 years ago
I like Seigel. I think he will proved to be right over the long term, if due to nothing more than inflation and excess returns on business capital. In the short term, however, I agree with Tkervin above - - who knows? Siegel doesn't know, and even if he did, he can't be trusted. Don't take my word for it; take his own words for it (circa Nov 2007 when Siegel was advocating 90% stocks when much the smart money - Buffett, Rodriguez, Klarman, et. al. - - had either lots of cash or were positioning themselves for a bear market.)

Long link cached from Google is below:

http://webcache.googleusercontent.com/search?q=cache:eKHjS9j7N9MJ:network.nationalpost.com/np/blogs/wealthyboomer/archive/2007/11/16/interview-with-jeremy-siegel-author-of-stocks-for-the-long-run.aspx+Jeremy+Siegel&cd=11&hl=en&ct=clnk&gl=us

oh, and that other guy in the videos just has no clue at all. He is just giving wrong and bad advice.

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