Photo: Bloomberg TV
Last month, Wharton Professor Jeremy Siegel boldly claimed that there was a 70 per cent chance that the DOW could reach 15,000 by the end of next year.He also said there’s a 50 per cent chance that it could reach 17,500 by the end of 2013.
In an interview with Bloomberg TV, Siegel explained why he was so bullish on stocks:
“…We know how much money has been flowing into those bonds funds over the last three or four years. All of a sudden they might get a little nervous and say where am i going to go? Where can i get some yield and also some protection against inflation and growth? and that’s when I think we’re going to see people fleeing the bond market moving into stocks.”
And Siegel isn’t too concerned about threats from Europe, oil prices or the Middle East:
“I hear all these problems. But history says the greatest bull markets climb the wall of worry. There’s always these things you can worry about to keep people out Michael when no one has any worries when there’s no clouds on the horizon that’s when I want to get out of the market.”
Siegel also said that oil prices are a wild card but the U.S. is half as sensitive to oil now as it was back in the 70s.
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