Jeremy Siegel is a finance professor at the Wharton School of the University of Pennsylvania, known for his work on long-term stock market returns and inflation. He authored 'Stocks for the Long Run,' a seminal book in finance literature.
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Siegel's research demonstrates that over long periods, stocks have significantly outperformed bonds and other asset classes despite short-term volatility.
He emphasized that while inflation erodes the value of nominal returns, stocks historically provide a hedge against inflation.
Siegel's analysis covers over two centuries of US stock market data, offering insights into historical performance trends.
His studies suggest that real stock returns (adjusted for inflation) have averaged about 6-7% per year over the long term.
Siegel argues that understanding historical market performance is crucial for making informed investment decisions.
Review Questions
What is Jeremy Siegel best known for in the field of finance?
How do Siegel's findings relate to the impact of inflation on stock returns?
According to Siegel, what has been the approximate average annual real return of US stocks over two centuries?