Wharton: Why Stocks Are the Best Bet

http://knowledge.wharton.upenn.edu/article.cfm?articleid=3196#.US66Xi8kAw0.email

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"To doubt everything or to believe everything are two equally convenient solutions; both dispense with the necessity of reflection." (Jules Henri Poincare')

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The Wharton School does an interview with Jeremy Siegel around this time each year to talk about the investment environment. Siegel is considered by many to be the best at what he does. The article from K@W, inclusive of a video of the interview, is attached.

I have more confidence in what's going to be happening in 2013 as a result of what Siegel has to say: assuming nothing is done about the "sequester" by this Friday, he sees U.S. GDP growth dropping .5% for the year. So what? Good point.

He sees the Case-Shiller home price index going up as a very positive sign of a good year to come. This would be the time to buy a house or a second home - mortgage rates are at an all time low.

Bonds are a disaster - they're not worth buying. Stocks are paying 3% to 4% dividends. Earnings are at all time highs. He thinks it's possible that the Dow could hit 15,000 by the end of this year.

Given the above, Siegel sees the U.S. GDP growth rate hitting 3% to 4% at year end 2013.

And, of course, "gold" is priced for the end of the world.

Read or listen for yourself.