Don’t fear the Fed’s 25-basis-point rate hike last Wednesday, according to Jeremy Siegel. Given the strength of the economy and low unemployment, he said stocks can withstand higher rates.
Siegel is the Russell E. Palmer Emeritus Professor of Finance at the Wharton School of the University of Pennsylvania and a senior economist for WisdomTree.
Over the last few weeks, the forward-looking data, including the money supply, commodity prices and home prices have all been increasing, he said, as have other metrics.
This is good for stocks – especially value stocks – which tend to be more cyclical.
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