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February 01, 2018 at 09:37 AM
Wharton Finance Professor Jeremy Siegel shared his long-term bullish outlook for equities with a crowd of about 3,000 RIAs and other guests Thursday during TD Ameritrade’s LINC 2018 conference in Orlando. But he also explained his near-term expectations.
“I do not see an inversion of the yield curve,” the so-called Wizard of Wharton explained.
What he does see for the year ahead is the Federal Reserve making three or four hikes in interest rates to about 2-2.25%.
“The Fed follows the data,” Siegel explained. “It will pause if there is a global crisis.”
He also sees the long bond rising to 3.25% by year-end. “That could be a bit of a challenge for the stock market,” the financial guru added.
“I believe the yield curve will get flatter but far from flat,” he explained, “and there’s no recession that I can see in the cards for the next 12 months.”
As for equity returns, Siegel expects more positive returns in the first half of 2018 and some type of a correction in the second half.
