Click the link to see when Rebecca was interviewed by Todd Bookspan on his podcast Your Neighborhood Real Estate Show: https://yourneighborhoodrealestateshow.com/rebecca-hidalgo-finding-clients/
- Jeremy Siegel sees stocks soaring 30% in two years, and house
prices dropping 15% from their peak.
- The Fed initially overlooked the inflation threat, and now it’s hiking
rates too fast, he said.
- Siegel warned the Fed’s war on inflation is increasing the risk of a US recession.
US stocks will surge up to 30% over the next two years, and house prices will tumble as much as 15% from their peak, Jeremy Siegel predicted on Bloomberg’s “Masters in Business” podcast this week. The Wharton professor and author of “Stocks for the Long Run” also rang the recession alarm, and castigated the Federal Reserve for first shrugging off the inflation threat then going overboard with its interest-rate hikes.
Here are Siegel’s 8 best quotes, lightly edited for length and clarity:
1. “After two years, the stock market is going to be 20% to 30% higher than it is
2. “Stocks are quite undervalued. If you buy stocks, in a couple of years, you’re
going to be very happy.”
3. “If you’ve got that long horizon and you’re young today, this is a golden time.
You’re not buying at the top. You’re buying near the bottom. You are going to be
guaranteed great returns when you retire.”
4. “Just to keep at these rates to 2023 will cause the second-worst collapse of the
housing market in the post-war period. Housing prices, from their peak, are
going to go down 10% to 15%. If they continue this up higher, it’s going to get
even worse.” (Siegel was referring to the Fed raising rates from nearly zero to a
range of 3.75% to 4% since March, and signaling further hikes are coming.)
5. “The fact that they didn’t begin to pivot until November of 2021, and they
didn’t start doing anything until March of 2022, is unforgivable. It’s gross
negligence as a steward of our monetary system.”
6. “They exploded the money supply in 2020. When did we start really seeing
inflation? The end of 2021. Now, we are only six months into the tightening cycle.
And they’re saying, ‘Oh my god, it’s not working. It’s not working. We’ve got to
keep on hiking.’ I’m flabbergasted.”
7. “The longer they continue on this path, that we keep on hiking or we’re going to
stay high for longer, a recession becomes a real possibility. I still think they have
a chance to avoid one.”
8. “What the market is so scared about is there seems to be no limit to their talk:
Hike, hike, hike, hike, hike. Because if they’re going to wait for inflation to go
down to 2% a year, we are in for a big trough.”