Jeremy Siegel is back, and yes, once again he’s telling investors to buy stocks.
Of course, his critics will point out that Mr. Stocks For The Long Run has been banging the same drum for a while now, and so it doesn’t really say much that he’s saying it again now.
But we still liked his language in an interview this week on NPR’s All Things Considered.
WSJ’s MarketBeat blog has the relevant chunk of the transcript
Prof. SIEGEL: I’m virtually sure that it’s not going to be a long wait. And the reason is we’re no longer at high points in the market. In March, we were down more than 50 per cent. And I looked all the way back last hundred years. Once you’re down 50 per cent, your prospects are very good.
NPR: You’re saying that the market dropped by so much over the past year that you’re saying, surely, this must have been the bottom back in March.
Prof. SIEGEL: Even in December of 1930, where you were 50 per cent down from that all-time high in 1929, your five-year return was more than seven per cent after inflation. The world looks different once you’re down as much as we have been down.
The whole audio is here.
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