Wharton Professor Jeremy Siegel has received a lot of attention for his harsh criticism of the Federal Reserve recently , but that's not why he is famous. His 1994 book, "Stocks for the Long Run," chronicled almost 200 years of investing in stocks and bonds, and contained groundbreaking research on the long-term outperformance of stocks over bonds and the effect of inflation on both those investments.
What about style or factor investing? Academic research has suggested that some investing styles like small cap, value, or momentum outperform over long periods. What are your conclusions? There's been literally dozens of factors that people have found. But one thing that I found very surprising and not in the literature at all, is that virtually all of those factors stopped performing in 2006, just prior to the Financial Crisis.
BobPisani Paywall- even though I watch all the CNBC advertisements and pay the salaries of reporters thru watching the ads, CNBC not content to be THE source.....
BobPisani In a way, he's also saying you should be in stocks BECAUSE of inflation. Need to earn a return more than bonds to beat it over long periods.
BobPisani So in other words Siegel’s portfolio is 100% invested in the stock market and he is extremely long and he is panicking 🤣
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