While some prominent strategists, including Jeremy Grantham and Robert Shiller, have pointed to the 10-year cyclically-adjusted price/earnings ratio (“CAPE”) as evidence that stocks (in particular the S&P 500) are very overvalued, Wharton Professor Jeremy Siegel says there’s a flaw in the metric. The flaw, Siegel said at a TD Ameritrade Institutional conference, involves the 2008 year, [...]
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Tag Archives: Jeremy Siegel
Siegel on Dividends — and Why So Many Missed the Crash
January 18, 2012
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Author and Wharton Professor Jeremy Siegel says dividends could — and should — be coming back into favor. In an interview with The Motley Fool’s Morgan Housel, Siegel discusses the reasons why dividend payouts have declined over the years, including tax issues and the fact that the rise of stock options as compensation have given [...]
Read moreSiegel Sees Historic Buying Opportunity
December 22, 2011
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Wharton professor and Stocks for the Long Run author Jeremy Siegel says stocks are as cheap as they’ve been since the early 1950s, when the interest-rate climate is taken into consideration. Siegel tells CNBC he doesn’t think that Europe’s debt crisis will lead to a Lehman Brothers-type event. He says he “loves dividend-paying stocks”, and [...]
Read moreSiegel: ECB Should “Backstop” Debt; U.S. Should Wait on Austerity Measures
October 20, 2011
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Author and Wharton Professor Jeremy Siegel says that the European Central Bank should provide the liquidity needed to help the debt crisis in Europe, and that such a plan doesn’t need to involve a full bailout of Greece. Siegel says it could involve a multi-trillion-euro “backstop” of debt guarantees, and says that such a move [...]
Read moreSiegel: Valuations Setting Market Up For Strong 3 to 5 Years
October 7, 2011
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Author and Wharton Professor Jeremy Siegel says he expects the stock market to remain volatile, but says he thinks stocks are offering “extraordinary” long-term values. Siegel tells CNBC that stocks are “the asset class to be in” given those values, which are setting stocks up for “a very good decade … in fact, a very [...]
Read moreFocus on Dividends, Siegel Says
August 25, 2011
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Wharton professor and author Jeremy Siegel says dividend-paying stocks — not Treasury bills, which he says are back in “bubble” territory — are the place investors should look for yield. “Despite the slow growth over the past decade, U.S. corporations, as typified by those in the S&P 500 Index, have been making record profits by [...]
Read moreSiegel Sees “Irresistible Values”; Says This Isn’t Another 2008
August 15, 2011
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Author and Wharton Professor Jeremy Siegel says the current low valuations in the market make it unlikely that we’ll see another decade of meager returns for stocks, like we did after the tech bubble burst in 2000. ”It’s certainly scary in the short run, but I think there are really irresistible values here in the [...]
Read moreSiegel: Market Cheap, But Could Get Cheaper
August 5, 2011
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Author and Wharton Professor Jeremy Siegel says he thinks the stock market is selling at an “extraordinarily low” valuation, but that economic fears could continue to push it down further in the short term. Siegel tells CNBC that he thinks the current turmoil is more like the correction that hit in April 2010 than it [...]
Read moreSiegel and Shiller Debate the Debt Conundrum
July 28, 2011
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How should the U.S. go about cleaning up its debt mess? In a recent interview with MarketWatch, two of the world’s top economic minds — Professor Jeremy Siegel of Wharton and Professor Robert Shiller of Yale — offered their takes. Siegel says Medicare is the big issue the government needs to address, and he doesn’t [...]
Read moreStocks for the Long Run?
July 20, 2011
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Are stocks the best bet for the long haul? In a paper to be published in the Journal of Finance, two researchers question the long-held investing assertion. “There have been periods in which stocks underperformed [Treasury] bonds and bills over 30 years, [and] 40-year periods in which stocks barely [outperformed] bonds,” Lubos Pastor of the [...]
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