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He thinks that equity investors can handle a slow rise in interest rates, but a quick jump to 3% on the 10-year would frighten investors.
Interestingly, Siegel thinks that if the 10-year stays at the current level (2.75%) we could have a good stock market for the next few weeks. As the author of "Stocks for the Long Run" I would have thought Siegel would be less inclined to make predictions on where the market is going to go over the next couple of weeks.
While tapering by the Fed will have to happen in the reasonably near future, Siegel thinks actually rate increases are years off.
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