Market Valuation, Stock Prices, and the Future
Submitted by Bernhardt Wealth Management on February 24th, 2020In a November 25, 2019 interview, Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania, offered this perspective on the equity markets: “I'd say we're at fair market value now.” He went on to list a number of factors, including historically low interest rates and low inflation, persuading him that stocks are still fairly valued. Remember that at that time, the Dow Jones Industrial Average (DJIA) was at nearly 28,000 and the S&P 500 Index registered just over 3,100. At this writing, the DJIA is at almost 29,000 and the S&P 500 stands at just over 3,300.
