Wednesday, May 23, 2012

Wharton's Siegel Sees Euro at Parity With U.S. Dollar in Six Months, ECB Backstops Banks, Likes Equities (5/22)

source: Bloomberg.com
On Bloomberg TV yesterday, Wharton finance professor Jeremy Siegel was not fazed about Greece leaving the euro, European bank runs, or the U.S. fiscal cliff on January 1, 2013 (tax increases and spending cuts). He believes the ECB will lower rates and print euros to backstop all of the European banks and to support European exports. As a result, European stock markets will rally and the euro will be at parity with the U.S. dollar in six months.

Regarding the U.S. fiscal cliff, he thinks President Obama could temporarily extend the tax cuts, which would boost the U.S. stock market. Siegel sees the Dow at 15,000 by the end of 2013. He didn't mention China risks.


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