Jeremy Siegel believes stocks are on their way to new all-time highs.
Wharton professor Jeremy Siegel told CNBC on Friday that stocks are on track to set a new high.
According to Wharton professor Jeremy Siegel, stocks are poised to reach new all-time highs as long as the US economy and corporate earnings remain robust.
The leading economist stated, "This is such a strong market," in an interview with CNBC on Friday. What's to stop this market now with lower inflation, a stronger economy, good guidance, and good profits?
Siegel stated that stocks may be heading towards a fresh milestone, as the S&P 500 is merely 4% shy of its previous all-time high of 4,796, achieved in January 2022.
According to FactSet data, 80% of the S&P 500 companies that have reported financials for the second quarter have surpassed analysts' earnings expectations. Meanwhile, according to Refinitiv data, roughly 70% of S&P 500 companies are trading above their 200-day moving average.
Siegel's outlook on stocks has improved in recent months, despite previous warnings about a potential recession that could derail the current market rally. This shift in sentiment is attributed to a number of bullish factors propelling the market, including robust corporate profits and broader participation in the rally, which means that a greater number of stocks are contributing to the market's upswing.
The Employment Cost Index also fell short of economists' expectations for the second quarter, with wages and salaries rising by only 1% from March, according to the Bureau of Labor Statistics. That's another encouraging sign that inflation is easing and the US is in a "Goldilocks economy," which means macroeconomic conditions are just right for growth, according to Siegel.
Additionally, Siegel dismissed concerns from market skeptics that the hype surrounding artificial intelligence is causing a stock bubble.
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