Professor Jeremy J Siegel recently spoke on the topic on “Outlook for Stock and Bond Returns” in New York in a conference for Equity Research and Valuation 2013. In his talk, he showed the surprising stable real return for stocks on a long-run despite the high volatility in the short-run. The relative returns and stability were compared with commodities and bonds. He also explained why the cyclically adjusted P/E (CAPE) shows that the US market is highly overvalued although it is not based on a revised CAPE. He also provide his outlook of the markets.

Personally I feel this is one of the best investment talk I have seen because of the depth involved. His talk was targeted at investment professionals. So most retail investors would have difficulty understanding. Nevertheless, I recommend everyone to view the talk to appreciate what investment really is. Most investors treat investments like a mega …