The Julia La Roche Show
#136 Professor Jeremy Siegel Shares Outlook For The Economy, Fed Rate Cuts, And The Stock Market
Jan 18, 2024
Famed economist Professor Jeremy Siegel shares his macroeconomic overview, outlook for Fed's interest rate policy, probability of a recession, stock market outlook, and the importance of owning stocks for the long run. He also discusses the impact of the pandemic, outlook for the economy, performance of growth vs. value stocks, and his journey to becoming an economist and professor without taking a finance class. Professor Siegel wraps up by highlighting stock market volatility and long-term returns.
46:35
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- There is a 50-50% chance of a soft landing or a recession in the economy, with a mild recession expected if it occurs.
- Lowering interest rates can encourage lending, stimulate the economy, and avert a cutback in consumer spending.
Deep dives
Outlook for the Economy and Possibility of a Soft Landing or Recession
According to Professor Jeremy Siegel, there is a 50-50% chance of a soft landing or a recession in the economy. However, if there is a recession, it is expected to be mild. Professor Siegel also shared his outlook for the Federal Reserve, stating that the rates are currently high enough and the need to bring them down. He believes that there is a misconception that six rate cuts are necessary for a good year, explaining that the Fed will not raise rates this year and the market's expectation of six cuts is biased. He sees a regaining of value stocks' outperformance over growth stocks in 2024.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
