Wharton School finance professor Jeremy Siegel cautiously warns savvy investors that the seemingly endless bull-run stock-market rally on Wall Street may be flashing red stop signs.
"This market has had a great run, and I wouldn't be surprised to see another correction," he recently told CNBC.
A "correction" is commonly defined as a temporary drop of at least 10 percent, essentially an adjustment for an overvaluation.
Siegel wasn't at a loss for all of the economic landmines that could stop surging stocks.
"We have some major challenges. The trade war is not yet resolved," he said, referring to President Donald Trump’s tariff squabble with China.
Siegel also warned that the Federal Reserve’s intention to keep hiking interest rates could also tame the wild Wall Street bull market.
"We're going to see how hawkish they are with the labor market as tight as it is. I still believe that they're going to be on track for four increases this year," Siegel said.
"The question is how will they feel about another raise in December. And, I think between the trade situation and the interest rate situation, and then of course the midterms in November, there are a lot of challenges facing Wall Street," he said.
Considering all factors, Siegel wasn’t his bullish self when it comes to the near future.
"There's going to be a little bit of disappointment on 2019," Siegel said. "I'm not going to call it an end to the bull market. I'm going to just call it a potential sideways reaction to economic news."
Siegel isn't alone in his pessimism about the market.
International investor Jim Rogers warns that the party on Wall Street is soon coming to an end with a bone-chilling market plunge.
“The New York Stock Exchange is making all-time highs. That does not excite me. All-time lows excite me,” said Rogers, who co-founded the Quantum Fund with George Soros in 1973.
His parents taught him “to buy low and sell high,” Rogers explained to CNN Money.
Rogers predicts all investors will see plenty of lows in the U.S. market because of foolishness at every level of American government.
Meanwhile, the best-selling author of various financial books told investors that “at the moment, the U.S. is the best place, the best market, Maybe not the best place to be but the best market.”
The chairman of Rogers Holdings Inc. cited a long list of global problems, including many Asian nations battling long-delayed debt problems that “have come home to roost.”
However, he repeated his mantra that a bear market is indeed going to hit America once again. And when it hits, the downturn will "certainly be the worst" in his lifetime.
© 2023 Newsmax Finance. All rights reserved.