"Stocks for the Long Run" author and Wharton finance prof, Jeremy Siegel says it will be a "difficult time ahead for the stock market."
In the fourth quarter, Rising interest rates are shaping up to be a "major impediment," and so much good news has already been priced into stocks.
Friday's strong employment report is pressuring the market and investors are having second thoughts about their asset allocations, Siegel told CNBC, on Monday.
Siegel made note of the U.S. government's $800-billion deficit and the Federal Reserve's continued unwinding of its balance sheet.
"That sort of psychology is going to creep into the decisions. That's going to make this quarter a difficult one," Siegel said.
Investors have become jittery over rising interest rates. The DJIA traded down 200 points intraday, closing up, however, almost 40 points by day's end.
Siegel countered his short term outlook , however, stating that in the long term, the stock market isn't overvalued, "it has to digest the news of a higher interest rate scenario."
