I don’t how they maintain friendship, but they claim they do. Jeremy Siegel teaches Economics University of Penn Wharton and Robert Shiller at Yale University. The two met each other at MIT in the fall of 1967. While their friendship deepened, their views towards the economy and the stock market diverged. Dan Rottenberg had this profile of their relationship and views in 2002.
They disagreed with each other back then, and they disagree today even more. The two professors appeared in CNBC today, giving their outlook for 2011.
Siegel, a habitual bull, thinks the stocks have leg to run higher from this point on. Here are his reasons: , Interest is low, earnings forecast is decent, valuation is reasonable, Fed has QE2, and the President and Congress has just enacted a bill that provides all kinds of the tax cuts and incentives.
Shiller is more reserved. He thinks the market is full priced. The market could go up based on speculative forces. He questions the sustainability of the high profit margin of the companies.
Watch the video:
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