1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
guruek
guruek
Articles (5983) 

Jeremy Siegel: One Week's Weak Unemployment Number Does Not Derail The Stock Rally

January 14, 2011

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.




Rating: 2.0/5 (4 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


kirk2% Div Growth
BoKraTest
rael2222ribasso 1
Nelson HsuAlphabet Scores
parjo628Momentum
dpostelBEST VAL W SECTORS
dpostelBEST VAL WITH SECTORS
danielkoehlerCheck PS
DANGORDON5/28/16
DANGORDON5/27/16

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK