The Folly of Jeremy Siegel & Modern American Portfolios

As the autumn winds begin to gust in 2015, Jeremy Siegel’s disciples seem ubiquitous across the world of institutional investing.  Allocations to equities are massive with the mentality being “of course we all know a correction is coming but I would rather suffer through a correction than miss the next leg up.” Eager to buy into Siegel’s mantra that endorse higher fee assets, Financial Advisors are aggressively talking down any semblance of real portfolio diversification, merely shuffling allocations between correlated paper assets. Advisors invariably reference the Siegel mantra either by name or in practice implying: long term investors have no place to go but “Stocks for the Long Run”.

In this article, Dillon Gage debunks several faulty assumptions that misrepresent the equity outlooks, understate the latent growing risk in American portfolios and more.