Tags: jeremy siegel | stocks

Siegel: Stocks Are Really Cheap So Buy Now

Friday, 09 September 2011 03:40 PM EDT

Stocks prices have taken such a beating that they have fallen too low in price and are ripe for bottom fishers, says Wharton professor and WisdomTree Investments Senior Advisor Jeremy Siegel.

Weak economic data in the U.S., especially stubbornly high unemployment rates, and debt woes in Europe are fueling sell-off after sell-off in equities markets, as investors ditch stocks and run to safe havens like gold.
Many stocks, however, may be oversold.
"I like stocks very much," Siegel says, according to Yahoo! Finance.
"Stocks are 25 percent to 30 percent below what I'd call 'fair market value' and that might be conservative in terms of earnings power and relative interest rates."
Long-term investors can rest assured that stocks will perform well because the world will likely avoid slipping back into a recession.
"Even if we have a recession, I think this is a cheap market and I don't think we're going to have one," Siegel says.
"My feeling, we're not going to have a recession so these are not unusually, tenuously, frightening earnings [projections]."
Many Americans aren't so sure.
More than eight in 10 Americans think the economy is already in another recession, according to a CNN/ORC poll.
Even those who had forecast new recessions down the road say darker times will be here sooner than later.
"I thought a few months ago that the perfect storm would be 2013," New York University economist Nouriel Roubini tells Bloomberg.
"But now, the economic weakness in the U.S., euro zone and the U.K. is front loaded. So we’re going to double dip earlier."

© Mike Reagan


StreetTalk
Stocks prices have taken such a beating that they have fallen too low in price and are ripe for bottom fishers, says Wharton professor and WisdomTree Investments Senior Advisor Jeremy Siegel.Weak economic data in the U.S., especially stubbornly high unemployment rates, and...
jeremy siegel,stocks
261
2011-40-09
Friday, 09 September 2011 03:40 PM
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