Stocks will soar to record highs, only 30% chance of recession: Siegel

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'Wizard of Wharton' predicts stocks will hit record highs - and sees only a 30% chance of recession

Stocks are headed to new highs, and the risk of a recession has plunged to about 30%, Jeremy Siegel says., published on Monday. He suggested the Federal Reserve may be done hiking interest rates, and might even cut them if needed. He also touted the US economy's recent strength as powerful support for consumer spending, corporate profits, and asset prices.

He contrasted that with the current backdrop: house prices climbed for a fourth straight month in June after dropping for seven months in a row, the money supply is growing again, and the Fed doesn't seem to have gone overboard with its rate hikes given the economy's continued strength. "I've lowered my probability of recession to below 50%," he wrote."If forced to give a probability, perhaps I would say 30%."

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