This week, we talk to Jeremy! Jeremy Siegel, a professor at the University of Pennsylvania, where he is often named Wharton’s Best Professor, and author of Stocks for the Long Run, Jeremy Schwartz is the CIO of Wisdom Tree Asset Management, where he has worked since May 2005.
We discuss why stocks — and how real estate, gold and bonds — have performed over time Among all asset classes, stocks have been the best performers over the past two centuries — more than 6% in real terms (after inflation). Real estate has barely outpaced inflation, and bonds have failed to keep pace with rising prices.
He explains the cycle of speculative exuberance — when investors become overzealous about stocks, overvaluing them, until the bust comes, making them very attractively priced. This is why there is a preference for indexing them, based on fundamentals, not market cap.
Siegel warned of inflation due to fiscal and monetary stimulus in the mid-2020s, now believing inflation has peaked and the FOMC is tightening excessively. He urged the Fed to stop raising rates soon.
Here is a list of his favorite books; A transcript of our conversation is available here this week.
You can stream and download our entire conversation with podcast extras on iTunes, Spotify, Stitcher, Google, YouTube, and Bloomberg. All our previous podcasts on your favorite podcast host can be found here.
Be sure to check out our Masters in Business next week with financial historian Edward Chancellor. He is currently a columnist for Reuters BreakingView and an occasional contributor to The Wall Street Journal and Moneyweek. In 2008, he received the George Polk Award for Financial Reporting. Chancellor’s Author”The Devil Takes the Hindmost: A History of Financial Speculation“His New Book”The Value of Time: Real Stories of Interest” nominated for the FT’s 2022 Business Book of the Year.
Jeremy Siegel’s latest SFTLR with Jeremy Schwartz
Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies, Sixth Edition By Jeremy Siegel
Favorite book by Jeremy Siegel + Jeremy Schwartz
Deep Space: Memories of Illness and Discovery By Ross Douthat
Hot Commodities: How Anyone Can Profitably Invest in the World’s Best Markets By Jim Rogers
The Newspaper Axis: The Six Press Barons Who Enabled Hitler By Catherine S. Olmsted