The Fed may be going towards the direction of a rate hike, says Wharton professor Jeremy Siegel

• The stock market might have bottomed, but the short-term outlook is unfavorable, with expectations of a sideways market for 2-3 months.
• Inflationary pressures from expanding money supply, commodity prices (oil in the upper $90s), and fiscal policy suggest the Fed is more likely to hike rates than cut them.
• Investors should hold equities, as a sideways market often precedes a significant rise once economic conditions improve, and inflation makes stocks more attractive than bonds.

Wharton professor Jeremy Siegel believes the stock market might have bottomed but expects a sideways market for the next 2-3 months due to persistent inflation and the likelihood of the Fed raising, rather than cutting, interest rates. Despite short-term headwinds, he remains very optimistic on equities long-term, viewing a sideways period as preparation for a future rally.