Taps Coogan – October 6th, 2021
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Wharton Finance Professor Jeremy Siegel, namesake of the Siegel Paradox and longtime bullish commentator on markets, recently spoke with CNBC to issue an uncharacteristically cautious outlook on markets. Dr. Siegel noted that the Fed is still underestimating inflation, a problem which he fears will eventually lead to an acceleration of tapering and “trouble.”
Some excerpts from Dr. Siegel:
“I think we are headed for some trouble ahead… We’ve been hearing about what’s going on in the energy market, natural gas prices, oil prices, but inflation in general is going to be a much bigger problem than the Fed believes and I think there is going to be pressure on the Fed to accelerate its taper process and I do not believe that the market is prepared for an accelerated taper. So, you’re right, seasonally November, December are good but I am looking for some turbulent times here in this fourth quarter.”
While that may be true, the ‘turbulence’ that arises from withdrawing this round of QE-Forever will presumably be the justification for the next round of QE-Forever.
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