University of Pennsylvania Wharton School professor Jeremy Siegel is predicting that market gyrations will continue into the Fed’s next policy meeting.
“I think it’s going to be a really kind of back and forth market without really strong gains at all until we see a little bit more clarity at the end of the month,” Siegel said during an exclusive interview with FOX Business’ Charles Payne.
Federal Reserve Chairman Jerome Powell will meet for the first time with Federal Open Market Committee (FOMC) members on March 21 to outline the economic forecast and fed funds rate.
During an appearance before the House Financial Services Committee on Tuesday, Powell said the U.S. economy is strong and gradual interest rate hikes will continue.
Siegel, who is attending the Forbes•SHOOK Top Advisors Summit in Las Vegas this week, said he expects the recent market volatility to settle down and warns that investors should not expect the gains generated in 2017.
“I think it’s going to be a much more difficult year in 2018 than what we saw last year,” he said.
Despite a rising interest rate environment, Siegel says dividend-paying stocks may surprise investors and the markets.
“If you want income but you want growth and protection from inflation, I think stocks provide the answers. Bonds cannot provide the answers.”