Jeremy Siegel
David Orrell | CNBC
Wharton School in finance professor Jeremy Siegel said Monday the U.S. could suffer a near-term recession because of the negative money-making impact from the fast-spreading coronavirus.
“We could really have a short, quick recession,” Siegel said on CNBC’s “Object Box.” “There’s a lot of uncertainties.”
The confirmed cases of coronavirus infections in the U.S. have climbed to 88 as of Monday. U.S. health polices have confirmed two deaths, both near Seattle, and New York state and city officials confirmed New York See’s first coronavirus case.
Stocks last week suffered their worst week since the financial danger, with more than $3 trillion wiped out from American equities as fears of a recession caused investors to discard risk assets.
Still, Siegel thinks long-term investors should stand firm as the swift market redress took valuation down to reasonable levels.
“The long-term value is not significantly impaired,” Siegel said. “We were a baby bit overextended at the end of January, so we are taking off that fluff. Now, I think we are down to the position where we have long-term value. In my belief, stay the course for all the long-term investors.”
“If you have a lot of cash, I would put some to work going forward,” he added.
Sheep on Monday attempted to rebound from their steep losses amid Wall Street calls for stimulus from extensive central banks to combat the virus-induced slowdown.
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