Salient to Investors:

Jeremy Siegel at Wharton said:

No bull market rises in a straight line so this is a correction only and typical of a market climbing a wall of worry. Dow headed to 18000 by year-end.

Fair market value is $18000 as the S&P 500 has sold for an average of 16.5-17 times earnings over the past 60 years  but if you take out the period of double interest rates the average P/E has been 18-19, or 10 % higher than today. Analysts are expecting an 8-10% earnings increase so that would be a bonus.

Disappointed that the Fed did not hint that if it sees continued weakness it might slow or stop the tapering temporarily.

Federal minimum wage increase to $10.10 is not a good idea but would not be a disaster and won’t change his forecasts but does not expect it to pass in this an election year. US is best jobs market in world and still creates more jobs than anyone in the world. Only one-third of the minimum wage earners are the primary family breadwinners.  

Myra accounts is not his first preference but anything that increases savings is a good idea as the US saves too little.

Disturbed by the unemployment drop to 6.7% s it was due to a combination of low participation rate and low payroll growth and not robust growth. We don’t need any supply constraints, bottlenecks in labor or products or raw materials which could prematurely end bull market as Fed would really have to tighten. 

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