Tags: Jeremy Siegel | Dow | 22000 | stocks

Jeremy Siegel: Dow to Hit 22K If Trump Obeys 'Republican Agenda'

The Wharton School of the University of Pennsylvania Professor of Finance Jeremy Siegel is seen in his office in Philadelphia. (AP Photo/Matt Rourke)

By    |   Tuesday, 14 February 2017 01:14 PM

Jeremy Siegel, finance professor at the University of Pennsylvania's Wharton School, predicts that the Dow Jones industrial average could surge above 22,000 if President Donald Trump follows the "Republican agenda."

If Trump does "lower taxes, lower regulations, that's another 10 percent on this market, I say, quite easily," Siegel recently told CNBC.

Taking down the Dodd-Frank Wall Street Reform and Consumer Protection Act, which increased regulation within the financial services industry in the wake of the financial crisis, has been a tenet of Trump's platform. Investors flocked to the financial sector after the election because of the rising interest rate environment and in anticipated loosening of regulation.

Trump has also vowed to cut corporate taxes, which would prove favorable for American equities.

However, if Trump moves more aggressively on protectionism, spurring a trade war or a currency war, and then "it's a very different picture," Siegel said. Although the likelihood of such events is slim, he said, that remains the biggest risk to the markets' rally.

For the year, the Dow is up 649.56 points, or 3.3 percent. The S&P 500 is up 89.42 points, or 4.0 percent.

He isn't alone in his bullish sentiment about the market.

Newsmax Finance Insider Andrew Packer agrees. "Stocks are still the best game in town for investors as we head into a new year. But they’re still pricey as well," he wrote in his weekly blog. "The S&P 500 trades close to 24 times earnings. The only two times stocks have been more expensive on average, we were entering the housing bubble 10 years ago and the Internet bubble 20 years ago," he wrote.

"The funny thing is, stocks could go a lot higher. Between high amounts of cash on the sidelines by wary investors and a lack of mania, we’re not at the psychological point where the trend is likely to break. And even, then, alternatives to stocks didn’t fare too well either," Packer said.

(Newsmax wires services the Associated Press, Bloomberg and Reuters contributed to this report).

© 2021 Newsmax Finance. All rights reserved.

Wharton School's Jeremy Siegel predicts that the Dow Jones industrial average could surge above 22,000 if President Donald Trump follows the "Republican agenda."
Jeremy Siegel, Dow, 22000, stocks
Tuesday, 14 February 2017 01:14 PM
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