Tags: jeremy siegel | virus | china | dow | stock | market

Jeremy Siegel: China Virus Has Held Dow Below 30,000

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By    |   Thursday, 13 February 2020 03:30 PM

Investment guru Jeremy Siegel said the Dow Jones Industrial Average would easily crack 30,000 if it weren’t for the market uncertainty around the coronavirus outbreak.

“If there is good news on this virus front, we would pop above 30,000 I think without question,” the Wharton Finance professor told CNBC.  he virus “interrupted” the market surge, he said.

Wall Street lost ground on Thursday, backing away from record highs as investors digested new coronavirus developments and mixed corporate earnings. The Dow Jones Industrial Average fell 128.11 points, or 0.43%, to 29,423.31.

Hopes that the coronavirus epidemic could be on the wane were soured by a spike in fatalities, with an additional 242 bringing China's coronavirus death toll to 1,367, Reuters explained.

The news caused a broad sell-off in global markets in a crisis that has resulted in quarantines, supply line disruptions and factory closings.

Still, there were glimmers of optimism as the director of the World Health Organization (WHO) told a news briefing that "we are not seeing dramatic increases in cases outside China."

"(Investors are) looking at cross-currents and trying to figure out which is more important," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "The fact that the Fed is willing to stay the course offsets the coronavirus issue."

Indeed, in his economic report to Congress earlier this week, U.S. Federal Reserve Chair Jerome Powell said the central bank was assessing the risk of the coronavirus and other potential threats, indicating any change to its accommodative policy was unlikely this year.

Meanwhile, Siegel said the market is trading at 20 times his estimates for this year’s earnings.

“That is not unreasonable” but also “certainly not cheap,” he explained. “When people forget about valuations, the market could get too high,” he said. But he stressed, “We’re not there yet.”

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Investment guru Jeremy Siegel said the Dow Jones Industrial Average would easily crack 30,000 if it weren’t for the market uncertainty around the coronavirus outbreak.
jeremy siegel, virus, china, dow, stock, market
304
2020-30-13
Thursday, 13 February 2020 03:30 PM
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