Juggling Dynamite

I first heard Jeremy Siegel speak when he was feverishly bullish on stocks and promoting the second edition of his book “Stocks for the Long-Run” in 1999 despite valuations and sentiment being at century-plus highs.  He’s not changed his thesis through two decades where stocks have dramatically underperformed the compound returns of treasury bonds.  His calls for inflation now still fly in the face of historical evidence suggesting the opposite.  Economist David Rosenberg articulates an opposing case well in this segment.

We have never seen a buildup in cash balances as we’ve seen now,” says Jeremy Siegel, Wharton finance professor. “I think anything connected to commodities, including land, is going to be a really good buy.” He joins ‘Closing Bell’ to discuss why he believes we will have higher inflation, which will ultimately hurt bond holders.  Here is a direct video link.

Jeremy Grantham, co-founder and chief investment strategist of Boston’s GMO, believes U.S. stocks have become an epic bubble and will burst in a collapse rivalling the crashes of 1929 and 2000. In this interview, he explains why, discusses the futility of Federal Reserve policy, criticizes the state of American capitalism, and shares his thoughts on gold, Bitcoin, emerging markets and climate change. Here is a direct video link.

Here’s the market action that followed the bursting of the three previous financial bubbles closest in scale to the present one.  Thank you central banks for all you do!  Entry points on the other side are well worth waiting for.

Danielle’s segment starts at 43:33 on the play bar and runs just over an hour.

Danielle was a guest with Jim Goddard on This Week in Money, talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.