The unemployment rate in the United States will not drop quickly or soon, says Wharton professor and author Jeremy Siegel.
While it appears the recession is over, investors should not expect the unemployment rate to bounce back as quickly, he told the Wisconsin State Journal.
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While unemployment figures could start improving as soon as December or January, the rates will stay high for the near future, Siegel said.
“We are on the mend. I don’t think another shoe is going to drop,” Siegel said. "You see confidence slowly coming back.”
Siegel is a fan of stocks that pay high dividends. He said investors should lean toward buying exchange-traded funds and international stocks.
“Most of the world’s capital is outside the U.S. People do not have to be afraid of opening their 401(k) statements; it’s better news now,” he said.
A weaker employment market may be here to stay, the Associated Press reported.
Some economists believe many Americans will experience a lower standard of living in the future.
"This Great Recession is an inflection point for the economy in many respects. I think the unemployment rate will be permanently higher, or at least higher for the foreseeable future," said Mark Zandi, chief economist and co-founder of Moody's Economy.com.
"The collective psyche has changed as a result of what we've been through. And we're going to be different as a result.”
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