October 05, 2021

Jeremy Siegel of WisdomTree Asset Management - Market Outlook and Concerns about Inflation

24 minutes

In today’s episode, we’re sharing Rusty’s recent live interview with Jeremy Siegel from Orion’s Ascent conference. Jeremy Siegel is a professor of finance at the Wharton School of Business and a Senior Investment Strategy Advisor at WisdomTree Asset Management.

Jeremy’s opinion on the economy and the financial markets has long been trusted and sought after by Wall Street firms because of his decisive and evidence-based approach. His view on inflation is notable and provides valuable insight into the markets from someone who’s been in the industry for a long time.

Jeremy talks with Rusty and Robyn about the benefits of value and global investing, the future of stocks and bonds, and insights regarding the future of the US market after an inflation run.

"Volatility is a mark of equities and all speculative markets, so we're not going to be immune to it. But right now, when I look at relative valuations, they still argue in the direction of stocks over bonds." ~Jeremy Siegel

Main Takeaways

The markets aren’t all doom and gloom. When the inflationary run is over, we'll be enjoying inflation rates as low as four to seven percent—rates that are still lower than those we had in the 1970s.

Value stocks are projected to outperform other asset classes over the next 12 months. When the market is experiencing moderate inflation, choose stocks over bonds.

Bonds with stabilized yields do not necessarily mean they are good investments. As long as inflation goes up, bonds are just depreciating assets. If you do invest in bonds, corporate bonds will fare better than noncallable bonds and long-term treasuries.

Advisors need to do two things: manage expectations and prepare investors for volatility. Investors get easily swayed by the doomsayers, but advisors must give them the long-term perspective, the history of the market, and help them stick with their plan.

Crypto assets aren't serious competitors to the dollar in terms of being an efficient transaction scheme. However, they present promising tech to innovate fund transfer operations.

Links

Jeremy Siegel

Wharton School of Business University of Pennsylvania

WisdomTree Investments

Orion Ascent Conference

I Might Be Wrong by Radiohead

Foo Fighters

Stocks for the Long Run 5/E: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies by Jeremy Siegel

Federal Reserve

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Behind the Markets Podcast

WisdomTree Podcasts

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Robyn Murray

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By Orion Portfolio Solutions

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