Jeremy Siegel, professor at the Wharton School of Business, said that the market is in a good place for both short-term and long-term traders.
Was Ben Graham's big purchase of GEICO shares actually a value investment? Perhaps it was contrary to what many believe. "In 1948, we made our GEICO investment and from then on, we seemed to be very brilliant people." -- Benjamin Graham, 1976 Both Benjamin Graham and Warren Buffett can attribute a large part of their Read More
Jeremy Siegel: A Lot Of Momentum Players In The Market That Are Riding Trends
But you're right. Historically September is the worst month of the year. Interestingly enough in the last 15 years it's usually been August. As everyone said Hey get out before September get in August and August was not a bad month. So you know it's it's more of a question mark about what is going to happen to September. You know I really think you know we're talking about you know on Twitter Facebook the hearings. But you know when that's pushed the trade war and the tariffs to the side. But I think that's a big thing certainly that that is facing the market in this month. We knew it we know we have a Fed meeting a decision meeting September 26 where they're very likely going to raise but also give signals about whether they're going to raise again in December. You know on Friday we have the employment report. So there's a lot there's a lot of things that are that are certainly happening. All that said.
The trends are still in place for the technicians. We do have a lot of momentum players in this market again. And they're riding the trends. So as long as those trends are up you know it may be painful to be short but you know clearly you know there can be jolts along the way and the trend writers will will jump off the train. So you think the market's in a good place. I mean I think for short term traders it it's in a good place. Not saying that there aren't uncertainly there short term play is a good place. Long term players I don't see any growth overvaluation. No there has been talk about you know too much bullishness there have been hey we're selling 18 times earnings and a low interest rate world. And that's 2000 18 earnings which is pretty much in the bag. What we know about this year. I mean that that is not to me to be long term threatening to say we're not going to have a short term reaction you know markets could in the short run will fluctuate a lot. But the trends are in for the traders and the long run still looks good to me.
Siegel it's Joe. It seems as though so far theU.S. equity markets have dismissed what's going on in the emerging markets should be concerned about it. Yeah.
Wow yeah there is a mess there. I actually think this could be an entry point. In the emerging markets. Wow some of those valuations are cheap but hey you know I've said that before we are actually kind of bouncing into triple bottom if you look at the some of the averages for technicians so if we don't go much further from here we could build a base.
I think three to five years. And those people who can stand the short term volatility will be rewarded in the emerging markets.