Wharton professor Jeremy Siegel says stocks are on the cusp of a new bull market
Wharton professor Jeremy Siegel thinks the stock market is on the cusp of a new bull market this year, according to a Friday interview with CNBC.a big stock market sell-off in the first half of the year, followed by a recovery in the second half."I think we are [on the cusp of a new bull market] because everyone says first half is going to be bad and maybe it's going to be better in the second half.
Aside from the contrarian nature of Siegel's bullish market call, he does see other reasons for stocks to move higher this year.The year-over-year rate fell to 6.5%, and prices were down 0.1% month-over-month. And according to Siegel, the drop in inflation is even more pronounced than seen in the official CPI data.
"When I put the actual housing data into the numbers we got yesterday, you actually get negative core inflation now. And I think the Fed is at some time going to be forced to realize that we've really solved the inflation problem. And I think that's one reason why the market has rallied and I think that they're [the Fed] not going to stay anywhere near as tight as they claimed," Siegel said.
That means the Fed is close to ending its interest rate hikes, and if they pivot to rate cuts, there's still a chance for the economy to avoid a recession.And even if a mild recession hits the economy, it could already be priced into the market given its steep decline in 2022, Siegel said. "I am so out of consensus by saying the Fed is going to have to lower the discount rate to a 2% handle by the end of this year, because they're going to see the economy slipping and they're going to see inflation going down. And when stocks see a 2% handle on the fed funds, even a big dip in earnings will not look so bad on terms of what values will actually be," Siegel said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
It is the time to stop raising rates, says Wharton's Jeremy SiegelJeremy Siegel, professor of finance at the University of Pennsylvania's Wharton School of Business, joins CNBC's 'Squawk Box'' to discuss deflation signals, the time to stop raising rates, and why the Fed should shift its focus away from wages and structural changes.
Read more »
Wharton's Jeremy Siegel says the U.S. has 'really solved the inflation problem'Siegel said the central can stop hiking interest rates now that inflation is cooling.
Read more »
Jeremy Strong stays in costume all the time while shooting SuccessionThe actor also picks out the clothes for his Waystar Royco heir Kendall Roy
Read more »
Hugh Dillon on NSFW Reason Jeremy Renner Would Be OK After AccidentRenner was injured and hospitalized following a snowplow accident earlier this month.
Read more »
'Avengers' star Jeremy Renner's recovery after devastating injuryJeremy Renner is 'crushing all the progress goals' as he remains in the ICU after a snowplow accident. Dr. Robert Glatter tells Fox News Digital that Renner faces a long road to recovery.
Read more »
Chicago organization helps 'Hawkeye' star Jeremy Renner celebrate his 52nd birthdayChicago's West Side organization 'The BASE Chicago' joined ABC7 after they posted an Instagram video wishing actor Jeremy Renner a happy birthday over-the-weekend.
Read more »