“Those who predicted a return of double-digit inflation couldn’t be more wrong.” — Jeremy Siegel
Last week on Veteran’s Day, I had breakfast at the magnificent old Union League of Philadelphia with Jeremy Siegel, the University of Pennsylvania’s renowned professor of finance, who is known as the Wizard of Wharton.
It was a fortuitous opportunity to sit down and speak with Professor Siegel. Five years ago, I met with him on Valentine’s Day 2009 before we went out to dinner with our wives. Before leaving, he showed me his 200-year stock market chart. Bear in mind that in early 2009, the United States was in the middle of the financial crisis and the Great Recession, and the stock market had fallen 50%. But Jeremy was upbeat. His graph showed that every time the stock market had fallen 50%, it hit a long-term bottom. The only exception was 1930-32, the Great Depression.
Siegel said that it was likely we would see the bottom within weeks. In the March issue of my newsletter, Forecasts & Strategies, I told the story about Siegel’s graph and said that the market was a “screaming buy.”
It was one of my best calls ever, thanks to my meeting with Professor Siegel.
Read more about our discussion and Professor Siegel’s take on the future at Eagle Daily Investor.