Talking about track record of making macro calls, Wharton professor of finance Jeremy Siegel has a pretty good one. On the record, he called for the March 2009 low and predicted in July of last year market would rally from that point on.
He has been bullish on the market since then. He is a supporter of QE2 and he thinks the tax cuts enacted by the US Congress and the President exceed his expectation – these two doses of medicine will keep the economy rolling. He sees S&P 500 index earnings coming in at $94 and the market is selling at about 13.5 of that value.
You have to give the professor credit for being optimistic: not weak first time unemployment benefit claimer number, not interest rate raising, not record level of foreclosure, not state and municipal budget problems – no, none of these factors is going to derail the market rally and economy recovery.
He sees the US economy grow 4% for the year and he anticipates the Fed start to raise interest in the second half of the year because of the economic strength.
In a word, he sees nothing but good.
He has been bullish on the market since then. He is a supporter of QE2 and he thinks the tax cuts enacted by the US Congress and the President exceed his expectation – these two doses of medicine will keep the economy rolling. He sees S&P 500 index earnings coming in at $94 and the market is selling at about 13.5 of that value.
You have to give the professor credit for being optimistic: not weak first time unemployment benefit claimer number, not interest rate raising, not record level of foreclosure, not state and municipal budget problems – no, none of these factors is going to derail the market rally and economy recovery.
He sees the US economy grow 4% for the year and he anticipates the Fed start to raise interest in the second half of the year because of the economic strength.
In a word, he sees nothing but good.
