Jeremy Siegel: S&P 500 All-Time Highs Are a Foregone Conclusion

During his recent interview with Bloomberg it’s clear that Professor Jeremy Siegel sees opportunity ahead. Despite headlines dominated by geopolitical risks and inflation fears, Siegel believes investors may be overlooking a powerful upward trend. “I think the tendency is definitely up, that the trend is up.”

The recent ceasefire news plays a major role. “If the ceasefire holds, it looks good now. That’s a tremendous plus for the markets.” He adds, “All time highs for the S&P are virtually a foregone conclusion now and further highs after that.”

Beyond geopolitics, central bank policy may provide a tailwind. “Powell was flexible. Clearly, Congress wants interest rates to go down and a number of Fed officials do. That could be a positive.” For Siegel, “I think they should go down also.”

He emphasizes the broader technological revolution underway. “The artificial intelligence revolution is just in the early stages. I think there’s a lot of positives for this market.”

Even in the face of regional conflict, the market remains resilient. “If we have a non-nuclear Iran, if there is a cease fire that now takes out… the possibility of a major oil disruption,” the risk premium comes down. “I would still like to see the Houthies neutralized so that we can get shipping around the Red Sea. And that would lower costs also.”

From a geopolitical perspective, Siegel sees strength. “This was executed extraordinarily well. That sort of power image, I think, is also not lost on China with respect to whatever ambitions they might have on Taiwan.”

A key inflation component could be cooling. “Home prices are beginning to fall. This is… shelter is 40% of the core CPI.” He warns investors not to overlook the lag: “We’re beginning to see the declines on the top end that is going to feed in the next 12 months a negative rate of inflation.”

On tariffs, Siegel strikes a pragmatic tone. “A tariff caused inflation… it’s just a tax. We can see through it. It’s a one time bump.”

His bottom line? “I think that the Fed is in a restrictive stance.” But with positive earnings, falling inflation pressures, and AI-driven efficiencies, “That inflation fear is lessened.”

You can watch the entire interview here: