Siegel Says Rally Has Legs

The stock market boost fueled by the Trump victory will probably continue through December, says Wharton professor Jeremy Siegel in a recent interview with CNBC. “When you have all the small stocks, large stocks, even tech stocks—which we know have some challenges—joining with it, I don’t think this is something that ends tomorrow.” At the time of the interview, Siegel predicted that the Dow could reach 20,000 (it now stands at 19,300). Siegel says that Trump’s plan to reduce the corporate tax rate from 35 percent would bolster S&P company earnings significantly. “Even a reduction to 25 percent,” he says, […]

Dow Prediction is Getting Close

Back in 2012, when the Dow Jones Industrial Average was at 12500, Seth Masters of asset manager AllianceBernstein predicted that it would reach 20000 by the decade’s close. This according to Steven Russolillo in this month’s Wall Street Journal. Masters, who has a history of bold forecasts over his 26 years at the firm, told Russolillo that his prediction “hit a nerve” due to the pessimistic investor climate at the time–bonds had beaten stocks over the prior decade. Masters said, “People were convinced the recovery was a mirage,” but he believed that stocks would bounce back against bonds (as he […]