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Tom Lydon, ETF Trends (163 clicks)
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Jeremy Siegel is a Wharton finance professor and advisor to New York-based ETF provider WisdomTree (WSDT.PK). He is an optimist when it comes to the U.S. and global economic recovery and gives us his thoughts as to why he is bullish.

Siegel acknowledges that the euro is in deep trouble, reports Olivier Ludwig of Index Universe. However, he believes that some European stocks are a buy. According to Siegel, European companies that primarily export will be very competitive due to a lower euro.

In the United States, Siegel believes that a growth trajectory is firmly in place. He even goes so far as to say that growth could top 4% in the second quarter and the second half of the year. That is way above estimates in the low 3% range. The key, he says, is that the recovery is now self-sustaining, no longer dependent on tax cuts and cash for clunkers.

Siegel also notes that emerging markets are doing extremely well, especially in Asia. Emerging markets’ GDP is now above the peak of the previous economic expansion that ended in 2007. He thinks that overall growth in developing countries could be as high as 5 to 6 percent; in Asia, 7 to 8 percent; and in China, 9 percent.

In terms of the euro, Siegel thinks one remedy to the situation could be developing two levels of the euro, where one is valued to the other. One type, the “core euro” would be used among all the core countries that are fiscally in good shape. The second type, the “old euro” would be used among countries like Greece.

Investors who concur with Siegel can look into the WisdomTree International Hedged Equity Fund (HEDJ), which is bullish on certain European stocks but hedged against the euro.

Sumin Kim contributed to this article.

Disclosure: None

Source: Why Jeremy Siegel Is Bullish on the U.S.