University of Pennsylvania's Jeremy Siegel: Bull Market for Stocks 'Still Intact'

Friday, 22 Aug 2014 11:17 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Some stock market participants may be jittery about geopolitical turmoil and the possibility of a Federal Reserve rate hike sooner than expected.

But Jeremy Siegel, a finance professor at University of Pennsylvania, is sticking to his bullish guns. Since January he has forecast that the Dow Jones Industrial Average will hit 18,000 by year-end, and now he says it may even be 19,000.

The Dow stood at 17,000 by late Friday morning.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Low interest rates and inflation will combine with strong earnings to boost stocks, he told CNBC. The 10-year Treasury yielded 2.42 percent Friday morning, and consumer prices rose 2 percent in the 12 months through July.

The market now trades at 16.5 times 2014 earnings, Siegel said. A move to 18,000 would imply a price-earnings ratio of 17.5, "a very reasonable multiple given the interest rates," he said.

As for potential pitfalls for stocks, "we live in a world of uncertainty, and bull markets climb the wall of worry," Siegel said. "When we see nothing in the future that can worry us at all, I'll get worried, and I'll probably tell people to sell stocks."

But for now, "I think our bull market is still intact," he said.

Other market participants agree. "A lot of the geopolitical concerns with the Middle East, Russia and Ukraine have dissipated," Phil Orlando, chief equity strategist at Federated Investors," told Reuters.

"The combination of that with good economic data and strong corporate results is making investors move stocks higher."

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Stories:






© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Shiller: 'There Is a Sign of Some Weakening' in Housing Market

Tuesday, 30 Sep 2014 10:58 AM

The S&P/Case Shiller 20-city composite home price index fell a seasonally adjusted 0.5 percent in July, the third straig . . .

Consumer Confidence Hits Lowest Since May on Job, Economic Fears

Tuesday, 30 Sep 2014 10:16 AM

U.S. consumer confidence fell in September to its lowest level since May on concerns over the job market and economic gr . . .

News Corp. to Buy Real Estate Website Operator Move for $950 Million

Tuesday, 30 Sep 2014 10:07 AM

News Corp. is spending about $950 million to buy the online real estate business Move Inc. in a deal that aims to speed  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved