Market is ‘one more bad inflation report’ away from a correction, Wharton’s Jeremy Siegel warns

CNBC/Stephanie Landsman/11-21-2021

Graphic of sitting bull and sitting bear“Long-term market bull Jeremy Siegel expects a serious pullback that isn’t tied to Covid-19 surge risks. His tipping point: a drastic change in Federal Reserve policy in order to deal with hot inflation.”

USAGOLD note  Siegel says “you have to be wanting to hold real assets in this scenario, and stocks are real assets.” We would question that assumption given the stock market’s performance during the runaway inflation-stagflation of the 1970s – a period increasingly likened to our own. The combination of economic stagnation and double-digit inflation made the decade a bearish one for stocks and bullish for gold. Siegel sees inflation rising by a cumulative 20% to 25% over the next several years.

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