Most people say that artificial intelligence will drive the stock market up, and geopolitical crises
Jeremy Siegel, a long-term bull in the US stock market and former finance professor at Wharton School of Business, believes that despite rising inflation,
interest rate fluctuations, and geopolitical risks, "stocks are still a good place to invest".
Siegel stated in an interview on Monday that investors should continue to be bullish on stocks rather than bonds, as the increasing popularity of
artificial intelligence will drive productivity growth and maintain strong economic growth.
Siegel observed that the GDP growth of the United States in 2023 was approximately twice that of 2022, although employment growth this year was
only half of last year. With the improvement of company efficiency, this dynamic highlights the current environment of productivity growth.
Siegel said, "I believe the prospects for artificial intelligence are real. This year, our growth is driven by productivity. Productivity driven growth will
lower inflation, benefit profits, but also drive up yields. Higher real growth rates, more borrowing, more capital investment, I hope to invest in stocks
instead of bonds
If the increase in bond yields is more driven by the sustained deficit in the United States than strong economic growth, it may mean higher inflation
rates in the future. However, this situation also conforms to Siegel's belief that stocks are better than bonds.
Where do you want to go in the face of a huge deficit? Stocks or bonds? You want to invest in stocks, "Siegel said. He implied that the stock market
has always been an excellent tool for hedging against inflation.
The increasing global geopolitical risks are not enough to scare Siegel away. In fact, he believes that these risks are a reason to buy stocks rather than
sell them.
