The Dow has closed above 11,000, the European Union is bailing out Greece and the U.S. economy seems to be perking up. Is the future as bright as it looks? In fact, it looks pretty good, says Wharton finance professor Jeremy Siegel. While the Dow’s 11,000 close doesn’t mean much to professional market watchers, it can give ordinary investors a psychological boost, and it focuses attention on the stock market’s fine showing over the past year. According to Siegel, the U.S. economy is in a self-sustaining recovery, no longer dependent on government stimulus — and while the housing market could take years to make up recent losses, the economy should do well. With interest rates likely to rise, it’s a risky time to invest in bonds, but stocks could end the year 8% to 10% higher than they are today, Siegel said in an interview with Knowledge@Wharton.
An edited transcript of the conversation can be found here.
Jeremy Siegel – Education
PhD, Massachusetts Institute of Technology, 1971; BA, Columbia University, 1967
Career and Recent Professional Awards; Teaching Awards
Best Business School Professor in worldwide ranking, Business Week, 1994; Lindback Award (outstanding university teaching), 2002; Helen Kardon Moss Anvil Award (outstanding MBA teaching),1996, 2005; David W. Hauck Award for Outstanding Teaching (Wharton Undergraduate); Best Article, Graham and Dodd Award, Financial Analysts Journal, 1993; Best Article, Peter Bernstein and Frank Fabozzi Award, The Journal of Portfolio Management, 2000; The prestigious Nicholas Molodovsky Award by the Chartered Financial Analysts Institute to “those individuals who have made outstanding contributions of such significance as to change the direction of the profession and to raise it to higher standards of accomplishment,” in May 2005
Academic Positions Held
Wharton: 1976-present (named Russell E. Palmer Professor of Finance, 1998). Previous appointment: Graduate School of Business, University of Chicago, 1972-76
Other Positions
Academic Director, Securities Industry Association Institute; Senior Investment Strategy Advisor, Wisdom Tree Investments, Inc.; Investment Advisory Committee, Zeneca Inc.
Photo credit: Jack Duval via Visual Hunt / CC BY
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