Jeremy Siegel: Did he get it wrong?

By Prieur du Plessis, on October 14th, 2009 posted in: Investment, Markets, Money

Jeremy Siegel is professor of finance of the Wharton School at the University of Pennsyilvania. But he is perhaps best known for his 1994 book Stocks for the Long Run, in which he explained why he believes buying and holding stocks is the best approach to investing.

In Part 1 of an interview with John Authers, investment editor of the Financial Times, Siegel is asked whether he got it wrong against the backdrop of last year’s market crash.

Click here or on the image below to view the video.

In Part 2, Siegel explains why the ageing populations in developed countries mean investors need to put money into emerging markets, or risk losing out.

Click here or on the image below to view the video.

Source: John Authers, Financial Times (here and here), October 14, 2009.

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Frank W

October 15, 2009 at 1:52 am

The wrong question is being asked here. What should have been asked is whether Siegel ever got anything right. In case you are not familiar with Siegel’s philosophy, it is that it is always a good time to invest. If the market is going straight up, it is a good time to invest. If the market is going straight down, it is a good time to invest. If the market is going directly sideways, it is a good time to invest. If the market is bottoming, it is a good time to invest. If the market is topping out, it is a good time to invest. There really isn’t any need to read his advice. One can be absolutely sure that he will always be advising you that it is a good time to invest. Another question that needs to be asked is how many merchant banks, stock brokers and investment advisers he is associated with for fun and profit. This guy comes across as dedicated to losing you money and guaranteeing fat fees for your broker. In my humble opinion, reading the advise of permabulls is about as useful as reading the advice of permabears. Why would anybody want to read such advice, when there is so much good stuff around? By good stuff, I mean articles by Roubini, Hussman, Mauldin, Evans-Pritchard, Munchau, Authers himself, etc.

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