Star University of Pennsylvania finance professor Jeremy Siegel has just put out the fifth edition of his book on the stock market, and once more the equities guru is right on target, says economist and author Mark Skousen.
The book is titled
"Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies."
"If there is indeed a definitive book on the stock market, then look no further than this one,"
Skousen writes in Barron's.
"The overriding theme is that history matters, not only for policy makers in Washington, but for investors making the right kind of investment choices," wrote Skousen, Contributing Editor for the Franklin Prosperity Report, which is published by Newsmax.
Siegel confirms some important market maxims, Skousen notes. "Most mutual fund managers fail to beat the market; dividend reinvestment is good; compounded interest and dollar-cost averaging are winning strategies for individuals; and for most people, long-term investing beats short-term speculating."
And Siegel remains bullish on stocks. "No one has made money in the long run from betting against stocks or the future growth of our economy," he writes.
Siegel, who called the stock market's bottom in early 2009, certainly has been proven prescient by the S&P 500's threefold surge from its March 2009 low.
Many now question whether that bull market is headed for a correction. Some historical data signal yes, but that data may not matter, says investment strategist Ryan Detrick.
"Going back 20 years, there isn’t a worse month" for stocks than August,
he writes on his blog. In those last 20 Augusts, the S&P 500 index has averaged a decline of 0.89 percent. And in the months it has slid, the average decline was 4.67 percent.
"When August is lower, it can get ugly," Detrick says. Going back to 1980, no month has a lower average return when it is negative, even dreaded October.
But that doesn't make Detrick a bear: "2015 isn’t playing out like the average year," he says. The market broke normal patterns with its declines in January and March and rallies in February and May.
"Wouldn’t it be something if this trend continued and August sported a surprise rally?" Detrick says. "I continue to think a market that goes up for six years and then sideways for eight months is healthy."
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