The famously bullish Wharton professor Jeremy Siegel told CNBC Tuesday morning stocks remain firmly in bull territory.
“20 [thousand] could happen,” Siegel said on CNBC.
He’s talking about the Dow Jones Industrial Average could head in 2015.
The Dow closed at 18,038 on Monday. It’s up 8.8% this year.
“We’re closer to fair market value, but we’re not there yet,” he said.
At a time when many are starting to worry about when stocks will finally drop, Siegel maintains his bullish position because he believes that interest rates will continue to stay low.
“We’re going to see maybe 2% instead of 4%, and lower interest rates will continue to feed people’s moods into stocks,” Siegel stated.
While the “Wizard of Wharton” maintains his bullish position, he sounded a bit more cautious than in the past.
“The last three, four years — it felt it was easy, it was a slam dunk. The market was undervalued and interest rates were low,” he added.
But now “we are closer to fair market value, but we are not there yet because I think interest rates will be presently lower.”
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