Jeremy Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business and Wisdom Tree chief economist, joins ‘Squawk Box’ to discuss the latest market trends, President-elect Trump’s tariff proposals, market outlook in 2025, and more.
date 2024-12-02 14:10:03
views 102001
author UCrp_UI8XtuYfpiqluWLD7Lw
source
Headline: Expect an S&P 500 in the 0-10% range in 2025, says Wharton’s Jeremy Siegel
In an interview, Wharton School of Business Professor and Chief Economist at Wisdom Tree, Jeremy Siegel, shared his views on the market’s performance in the upcoming year. He believes that the S&P 500 will remain flat, with a potential range of 0-10% in 2025. This forecast contrasts with the strong performance of 2023 and 2024, where the S&P 500 saw significant gains.
Siegel attributes this potential slowdown to the valuations of the mega-cap stocks, including the "Maga 7" – Apple, Amazon, Alphabet (Google), Facebook, Microsoft, Netflix, and Tesla. These stocks have already seen their growth brought forward, and Siegel thinks they may not continue to outperform in the next year.
Meanwhile, Siegel is optimistic about the mid-cap and small-cap stocks, which are currently undervalued compared to the mega-caps. He expects a "rotation" in the market, where these smaller-cap stocks will outperform, leading to a more balanced market.
Regarding President-elect Trump’s policies, Siegel is cautious about the potential impact on the market. While he believes that a moderate approach to tax cuts could be beneficial, he’s concerned about the potential pressure on the bond market if all of Trump’s promises are implemented.
In terms of DeFi, there is no direct reference to decentralized finance or blockchain-related topics in the interview. However, Siegel does mention the rise of alternative reserve currencies, including Bitcoin, which may pose a threat to the US dollar. He finds it curious that President-elect Trump is both a supporter of Bitcoin and has called for a new currency in certain countries, which could create a contradiction.
