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Jeremy Siegel’s Outlook for 2008
By JLP | January 15, 2008
For those who are interested, you can check out Jeremy Siegel’s 2008 Economic and Market Forecast (PDF).
Here’s the part that I found interesting:
“I believe that the stock market will do better in 2008 than it did in 2007, when it chalked up a 5.5% return, the fifth year in a row that the market went up. Year-ahead forecasts for the market are notoriously difficult, but I believe that a 10% to 12% gain is possible, on the heels of a recovering financial sector. Financial stocks plummeted about 20% last year, and this was the reason why the market had a mediocre year. Outside of financials, the S&P 500 Index had double digit returns. A revival of financial stocks would spur good market gains this year.”
The question is: will we see a revival in financial stocks in 2008? It’s definitely not starting out that way:
Topics: Investing | 4 Comments »
January 15th, 2008 at 7:48 pm
I hope Siegel is right and I hope financial stocks turn it around. If financials do not turn around, this market can’t do very well. We have a deep hole to dig out of to have a good year, it is certainly still possible though.
January 16th, 2008 at 12:36 am
The next year or two will prove to be one of the best buying opportunities of our lifetimes in the financial sector…
IMHO
January 16th, 2008 at 12:17 pm
I’m just happy to see SOMEONE with an optimistic outlook: I watched ten minutes of CNN last night and some blowhard commentator made it sound like we were worse off than during the great depression.
I personally don’t know anyone who is foreclosing on their house. I know three people in my office who have bought houses in the past three months and got terrific deals on the properties and the financing.
I think the economy and the housing market will be sticky for the next few years, but unless everyone plans on living in their parents basement forever, it will correct itself.
January 16th, 2008 at 12:40 pm
Ernesto,
I think the housing crisis as far as foreclosures go, is pretty much regional. We aren’t experiencing any problems in my town. Of course, we also did not experience sky-rocketing housing prices either.