Siegel Says Stay in Stocks

As the Dow continues to climb amidst conjecture by some around a possible market decline, Wharton professor Jeremy Siegel thinks investors shouldn’t avoid buying stocks, according to a CNBC article posted last week. The author of Stocks for the Long Run says that when investors “anticipate a significant drop—say, 20 percent—they typically do not consider the fact that the stock market may in fact rise between current levels and a large decline.” Even if they avoid buying, he says, they would be better off just sticking with current holdings. A second mistake investors could make, according to Siegel, is discounting […]

Siegel Still Believes in Stocks for the Long Run

Twenty-two years ago, Wharton professor Jeremy Siegel asserted in his book Stocks for the Long Run that equities were the best long-term investment and that buying and holding through volatility is the best approach for investors. This according to an article in last week’s Wall Street Journal. Siegel’s research, which covered more than two centuries, showed that stocks generated 6.7% in annual returns (inflation-adjusted) compared to 3.6% for U.S. government bonds. He expects the post-election rally to continue and, the article says, believes “stocks will respond well to the prospect of more-favorable corporate taxes and less regulation.” That’s not to […]