CNBC’s “Closing Bell” is joined by University of Pennsylvania Finance professor Jeremy Siegel to discuss the state of the markets and whether he sees a threat of recession on the horizon.
ValueWalk's Raul Panganiban interviews Dr. Kathryn Kaminski, Chief Research Strategist at AlphaSimplex, and discuss her approach to investing and the trends she is seeing in regards to quant investing and hedge funds. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with AlphaSimplex's Read More
Jeremy Siegel: I Think We’ve Seen Stock Market Bottom
We answer that question have we seen the stock market bottom.
I think so. I mean I wouldn't be surprised if we had a little test of that stock market bottom. But as Bob Husaini was saying boy that that Christmas Eve was a scary session and I think that will be the bottom of of this reaction. I mean I think the values just became overwhelming at that point. And you know you mentioned I said it's a game changer that the 10 year you know the rising tenure rate which was a constant threat to the market last year. I mean has collapsed it's under two and three quarters. If you'd told me last fall you know we'd have a ten year under two and three quarters I'd say you know what are you smoking. I don't think anyone predicted that. So I think that I think that's a real positive for the markets and I think that with the pit the price earnings ratio as it is I think we're going to have a good year in stocks.
But Jeremy story to us sort of obvious follow up question the level of rates has improved. Sure if you're a risk investor but the shape of the yield curve hasn't. And so do you not think that this pullback in yields is somewhat bearish for the economy.
Well you know I've been on record saying I think the December hike that the Fed made was a mistake. I don't think it's a deadly mistake. I think that long term interest rates are more important to investors. Portfolio allocators you're still deciding the stocks are long term assets so they're going to compete more with the bonds than with the treasury bills. Yeah i got i. I do think it got flatter and I think this means a slow down. I think it's going to be like 2016 we had that slowdown in the economy and it was a pause that refresh and I'll tell you that labor market report on Friday a blockbuster you could hope for anything better in terms of strong payrolls and a strong uptick in the participation rate which I think alleviate some of the pressure on that labor market. I think when I saw Friday I heaved a sigh of relief I said wow that's. That I don't say see any recession in in the cards with that sort of payroll gain.