Jeremy Siegel: 'Bull Market Definitely Not Over' for Stocks

Monday, 04 Aug 2014 12:00 PM

By Dan Weil

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Since the beginning of the year, stock-market guru Jeremy Siegel, a finance professor at the University of Pennsylvania's Wharton School, has been saying that the Dow Jones Industrial Average will reach 18,000 to 20,000 this year.

And he's not changing his tune after the Dow's 2.8 percent drop last week. The Dow stood at 16,481 Monday morning.

"The bull market is definitely not over," Siegel told CNBC. "Surely there might be a correction. We always have corrections in a bull market. I actually don't think this is going to be one of them."

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


The S&P 500 hasn't fallen 10 percent since October 2011, almost 32 months ago. The average period between 10 percent corrections is about 18 months since 1946.

Some stock market participants are concerned that the Federal Reserve will raise interest rates late this year or early next year. But Siegel doesn't believe that's cause for concern.

"If you look at history, bull markets do not end when the Fed starts raising interest rates," he said. "Bull markets could go on for another nine months to two years.

"I still think the big bull is taking control of this market. I don't think he's going to give up," Siegel stated.

A correction would represent "a great buying opportunity for investors," he said.

To be sure, continued signs of economic strength could keep investors jittery about a rate hike, weighing down stocks, Mike O'Rourke, chief market strategist at JonesTrading, told MarketWatch.

"Every time we see data really heat up, it will really spook investors and keep a cap on the equity market for the time being," he said.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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