Siegel: Low Rates Are Long-Term Bullish

“The reason I’m not bearish is that interest rates are so low and even with the Fed maybe tightening in June, maybe September, they are going to remain well below their average for many, many years, and that’s a very, very important consideration — valuation of the market. …

“I would not just look at the historical P/E and say, ‘Oh, wow, the market is overvalued.’ You must value stocks, in fact all assets, relative to interest rates and what else is available in the financial markets. …

“I would not advocate to start tilting away from stocks and moving into alternative assets. I don’t see any there that I find more attractive than stocks at the current time. …

“I mentioned at the end of last year that, although I thought 2015 was going to be good, I certainly wouldn’t be surprised to see a correction … it’s almost impossible to be certain about when a correction is going to happen and I’m still bullish long-run.”

— Excerpt contributed by Jason Kelly

_____________________________________

Z-val: Jeremy Siegel
Via: CNBC
Date: 3/9/15
Disposition: Long-Term Bullish
S&P 500 on 3/9/15: 2079
S&P 500 on 12/31/15: 2044
Change: -1.7%
Judgment: Wrong

Z-val definition and more forecasts in The Z-val Zone.

Siegel

Scorecard

This Forecast

Accuracy

of 2

Judged

Forecasts

Created with Snap
This entry was posted in Z-vals and tagged . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Home of 3Sig. Bane of the z-vals.