Sunday, September 4, 2011

Shocking Quote of the Month

September 2, 2011
Jeremy Siegel: Stocks Are Cheap! (And Getting Cheaper)

I like stocks very much. - Jeremy Siegel

Shocking!

As a side note, I did not watch the video. There's only so much shock I can handle in a given day. ;)

19 comments:

fried said...

"I like stocks very much"...that's pretty funny for a man who pretends to be serious.
I like ice cream very much and if it's getting cheaper, then I might as well wait, until it hits its cheapest price, and get the most for my buck.
I followed your lead and skipped the video, but does liking something constitute analysis...and if stocks are cheap (?) and getting cheaper, isn't he suggesting that everyone cash out, and wait for a better entry point.
I bet that will do wonders for the price of stocks.

Stagflationary Mark said...

fried,

Shame on me for even going down this path but I simply cannot help it.

When I read the quote I immediately thought of this, lol. Sigh.

Mr Slippery said...

He thinks stocks are 25-30% undervalued right now and that Shillers CAPE is wrong because is factors in the 2009 earnings. He thinks those earnings should be thrown out because they were too low.

He doesn't think we will have a recession, but even if we do, he thinks stocks are undervalued. The only thing that would make him bearish on stocks is oil at $200 or very high inflation.

He might have a point if your time horizon is 75 years. That's about how long it took to make permanent gains from the 1907 top.

That interview would have been funnier if he had left his clown makeup on and was squeezing a bike horn every time he said he liked stocks.

getyourselfconnected said...

In a regular recession, stocks are way too high right now by any metric.

Stagflationary Mark said...

Mr Slippery,

That interview would have been funnier if he had left his clown makeup on and was squeezing a bike horn every time he said he liked stocks.

LOL!!!!

Stagflationary Mark said...

GYSC,

Not by clown metrics! ;)

fried said...

Mark,
do you have any info on exposure to Euro paper in American money market funds? The treasury m m fund at Vanguard holds most of my cash, but is now closed, and the sweep account is another m m fund. Watching them Yerps this morning, I am reminded that I should move money out into bank CDs. The Vanguard rep was not well informed.
There's a familiar smell this morning...it smells like Lehman.

Stagflationary Mark said...

fried,

I'm 100% FDIC insured on my savings. No money market exposure.

Days like these are why I like TIPS bought directly from the government. I may be ruined someday, but probably not first!

He who is ruined last, gallows laughs best?

Mr Slippery said...

fried,

I have the same issues and when I talked to Vanguard on the phone, they were like, duh, European banks are super safe!

I have over half my IRA in the treasury MMF, and the little that was in the sweep MMF, I moved on Friday to something safer -- like mining stocks.

It really sucks not to be able to use the treasury MMF as the sweep, you can't use the muni MMF either, only the prime with exposure to Europe.

Mr Slippery said...

...mining stocks. forgot to add [BIKE HORN TOOT]

fried said...

Mr Slippery,
I am mainly pleased with Vanguard, but was surprised that questions re Euro paper baffled the rep. My immediate problem is should I bail on my oil fund, given that downward spiral.
Following the logic of the esteemed Mr. Siegel's advice, I should, and take the loss and wait for a lower entry. Or just bail and head for CDs..I was hoping for Bennie to do a little QE3 before jumping, but maybe not. Would that I could dump it all in ibonds.

tj and the bear said...

Boy, if Jeremy likes stocks now he'll absolutely love them going forward, as they'll continue to get even cheaper -- WOOHOO!!!

Stagflationary Mark said...

Mr Slippery,

...mining stocks. forgot to add [BIKE HORN TOOT]

You are killing me, lol. ;)

Stagflationary Mark said...

fried,

The barn's ablaze. The doors are being sealed. The horses are not to be seen.

That's okay though. Bernanke still has one of these to fix everything.

Long before the Super Soaker® doused its first victim, monkeys were using primitive squirt guns for hilarious hijinks in the jungle. This 10" long bamboo device is a replica of those first crude squirt guns designed by monkeys.

Stagflationary Mark said...

tj and the bear,

WOOHOO!!!

Toot!

fried said...

This is silly, but I bought a soaker for my 5 year old nephew this summer.
He had a blast with it, and soaked us all. Yup, one happy little primate.

Stagflationary Mark said...

fried,

It sounds like your nephew now has all the skills to become a top-notch central banker.

All the skills are underwater based.

Mr Slippery said...

That clown horn sound had me rolling in the floor. That is what I hear in the background when Siegel says he likes stocks. Hahaha. A classic!

Stagflationary Mark said...

Mr Slippery,

I really did laugh out loud every time you mentioned it. That was the exact noise playing in my head.

I had to go find it just to release the clown demons! ;)