Wharton's Jeremy Siegel sees stock market up another 10% this year as Covid stimulus adds fuel

  • 📰 CNBC
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 72%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

The latest Covid stimulus bill will help the U.S. economy roar, allowing the stock market to overcome rising bond yields, longtime bull Jeremy Siegel told CNBC.

The yield on the benchmark 10-year began the calendar year, but it's soared since the end of January on expectations of a strong U.S. economic recovery from pandemic-induced damage, as well as fears of accompanying inflationary pressures. The yield, which moves inversely to prices, traded around 1.5% on Thursday, retreating from one-year highs above 1.6% in recent days.

Siegel, for his part, said he believes pent-up demand being unleashed on the economy — coupled with the dramatic increase in money supply during the pandemic — will continue to drive yields higher and lead to higher inflation. However, Siegel said he thinks investors will still prefer to be in equities over bonds, particularly those in cyclical sectors that benefit from an economic reopening. The longtime market bull told CNBC earlier this week he believes they will"Let's assume bonds to go 2.5% or 3%. If in an environment where have a 4%, 5% inflation — which I really think is going to happen — that's still not attractive at all" for investors looking for yield, Siegel said Thursday.

"If bond yields are rising, you take a double hit," added Siegel. "You have less purchasing power on the bond and the bond price falls, so we can't take advantage today of a bond yield 3% a year from now. It actually makes the bond market that much worse compared to stocks, and that's why the money I think is going to continue to flow into the stock market."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

WallStreet 'advisers' and mass media: CNBC, Bloomberg have to be very proud for luring clueless retail 'investors' into the biggest StockMarket BUBBLE in history! This is what they are paid for by big corporations - turning retail investors into bagholders!

Investors! There is only ONE the most important thing you need to know about StockMarket - WE ARE IN THE BIGGEST STOCKMARKET BUBBLE IN HISTORY!!! 196% Ratio of StockMarket CAP to GDP!!! SIGNIFICANTLY OVERVALUED!!! DON'T LOSE YOUR MONEY!!!

𝐈 𝐰𝐢𝐥𝐥 𝐤𝐞𝐞𝐩 𝐬𝐡𝐚𝐫𝐢𝐧𝐠 𝐦𝐲 𝐭𝐞𝐬𝐭𝐢𝐦𝐨𝐧𝐲, 𝐈 𝐣𝐮𝐬𝐭 𝐦𝐚𝐝𝐞 𝐦𝐲 𝐭𝐡𝐢𝐫𝐝 𝐰𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐚𝐥. 𝐓𝐨 𝐞𝐯𝐞𝐫𝐲𝐨𝐧𝐞 𝐥𝐨𝐨𝐤𝐢𝐧𝐠 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐛𝐞𝐬𝐭 𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐭𝐨 𝐞𝐚𝐫𝐧 𝐃𝐌 Alexadra_Alison

From one day ago... so it will unravel for a 10% gain? Smells like click bait or this guy is talking out of both sides of his mouth.

good

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Wharton's Jeremy Siegel explains why inflation may only cause a blip in bull run for stocksJeremy Siegel: Jobs report shows difficulty hiring workers, not that there isn't enough demand for jobs. 'And I disagree with the president that the unemployment insurance is not having some effect on not taking the jobs.' Can we go somewhere today? Maybe Siegel should work at McDonald’s since he thinks the pay is so good
Source: CNBC - 🏆 12. / 72 Read more »

Market bull Jeremy Siegel warns the Nasdaq rebound will unravel, favors value stocksThe economic backdrop dramatically supports the reopening trade over Big Tech and growth plays, according to Wharton's Jeremy Siegel. TradingNation Kick rocks bro TradingNation horrible TradingNation Agreed. The question is when and not if. The same thing could have been said the last 2 years. Most retail volumes are small enough to exit without any issue in a crash. Lots of money to be made still. Wouldn’t be surprised if institutional funds are already rotating though.
Source: CNBC - 🏆 12. / 72 Read more »