Stock-market guru Jeremy Siegel, professor of finance at the University of Pennsylvania, predicts Donald Trump would be the Republican nominee but wasn’t likely to be elected president.
“If it is Trump versus Clinton, I don’t see how Trump can win,” the Wharton finance professor and economist told the Times of San Diego.
He told customers of the UBS San Diego County Complex that a Clinton victory combined with continued Republican control of Congress would be good for investors.
“If we look at history, the greatest bull market in the 250-year history of the stock market occurred when a Clinton was president and the Republicans controlled the Congress,” he said, referring to Bill Clinton’s two terms in the 1990s.
The New York billionaire scored big wins in Florida, Illinois and North Carolina on Tuesday which brought him closer to the 1,237 delegates he needs to win the nomination.
Republican Party leaders are appalled at the real estate developer and reality TV personality's incendiary rhetoric and believe his policy positions are out of step with core Republican sentiment, such as his vow to deport 11 million illegal immigrants, temporarily ban Muslims from the United States and build a wall along the border with Mexico.
Foreign diplomats have expressed alarm to U.S. government officials about what they say are inflammatory and insulting public statements by Trump, senior U.S. officials have told Reuters.
Officials from Europe, the Middle East, Latin America and Asia have complained in recent private conversations, mostly about the xenophobic nature of Trump's statements, said three U.S. officials, who all declined to be identified. "As the (Trump) rhetoric has continued, and in some cases amped up, so, too, have concerns by certain leaders around the world," one of the officials told Reuters.
Meanwhile, Siegel addressed a variety of topics:
- Siegel said all of the extreme economic policies proposed by hopefuls during the campaign won’t be possible. “One has to remember that everything must go through Congress,” he said. “Very little can really be done on executive order.”
- Siegel said it was unlikely that the Federal Reserve Board will raise rates beyond 1 percent. “We’re going to have low interest rates for many, many years to come,” he said.
- Siegel said stocks are a better investment now than in a long time, despite widespread worries about another market crash.
- Investors can’t rely on fixed-income instruments like bonds and certificates of deposit, he said, but will have to come back to the stock market despite its volatility.
(Newsmax wire services contributed to this report).
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