Even with the recovery in the last nine months of 2009, many clients are still anxious about owning stocks.

If you’re running into nervous clients, you might want to refer to a recent interview with Jeremy Siegel, the Wharton academic who’s the leading authority on long term asset class returns.

A link to the full interview is below.  Among the key points Siegel makes:

• Stocks today are fairly valued based on current earnings – and over the next year will likely offer better returns than bonds and cash
• Why stocks are likely to be significantly higher by 2012
• Inflation is not going to be a concern in the near to mid term
• The reason US deficit spending isn’t the biggest cause for concern going forward
• Why the last ten years have been so miserable for stocks – and the reason that investors can expect after inflation returns of 6 to 7% on stocks going forward

Here’s the full article: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2411

And for clients who’d like to watch Jeremy Siegel talk about his views, below are five short video interviews he did last September that you can email to clients.

Stocks for the long run and long term returns http://www.clientinsights.ca/video/stocks-for-the-long-run-and-long-term-returns/type:investor

The growth trap and the role of dividends       http://www.clientinsights.ca/video/the-growth-trap-and-the-role-of-dividends/type:investor

Looking back on the past ten years in markets – what went wrong http://www.clientinsights.ca/video/looking-back-on-the-past-ten-years-in-markets-what-went-wrong/type:investor

Today’s valuation levels and market outlook   http://www.clientinsights.ca/video/today-s-valuation-levels-and-market-outlook/type:investor

The case for international investing       http://www.clientinsights.ca/video/the-case-for-international-investing/type:investor