Lots of informative insight from one of the long-time
trusted investment experts, Wharton professor Jeremy Siegel. Quick take:
·
stocks are fairly valued, not overpriced
·
value stocks will soon take over performance
leadership from growth stocks, largely because their dividends are higher than
the interest rates of bonds and we have increasing population of retirees
needing investment income instead of growth and they'll seek dividends over
bond interest more than ever
·
interest rates are low more because of economic
factors than the strategies of major central banks
·
inflation is low and should stay low
·
economic growth in USA is low-ish, but no
recession any time soon
·
workforce participation #s are improving (the
"unemployment rate" gets the most attention, but workforce
participation rate is arguably just as important)
·
predicts Trump will be impeached by the House,
but not removed from office by the Senate
·
predicts House stays Dem, Senate stays
Republican
·
says "trade war" with China is biggest
economic threat and having one would trigger big drop in stock markets, but
that Trump will avoid trade war because it would ruin him politically
For my clients' investments, I continue to recommend
diversified portfolios. Whether to be aggressive or moderate or
conservative, or in-between, in that diversification is something with which I
can be especially helpful.
Contact me with any questions.
