Is Dow 18,000 now on the horizon?
Wharton School professor Jeremy Siegel says he could see the average hitting another big number by the end of the year.
Uber bull Jeremy Siegel (pictured) said Wednesday that he expected the market's stampede to continue, easily pushing the Dow Jones Industrial Average ($INDU) past 18,000 by year end.
"I would not be surprised to see it over 18,000," he said. "I think the big difference between what I see now and what I saw last year is the interest-rate situation."
On CNBC's "Halftime Report," the renowned Wharton School professor of finance said low interest rates would send stocks soaring.
"I think we're going to get to 18 and above. Could it go to 19, 20? It could," he said. "I'm not going to say that's the likely event, but so many people have missed this bull market that they start saying, 'Hey, you know, this is my last chance.'"
But Siegel saw a limit for stock prices.
"We could be overvalued at 20-21,000, at least in the short run," he added. "Again, just like I said a year ago, markets often go beyond fair market value before they correct back down."
Siegel also said that there "could be a lot of volatility" in the next six to 12 months.
A few factors could still derail the rally, he added.
"I would say my biggest worry would be on the inflation front. If we start seeing some supply constraints, if the low unemployment brings wage increases that are not matched by productivity increases, oil stays high and gets higher, that'll be a problem," he said. Much higher gasoline prices, too, "would certainly be a problem."
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He might be right but it won't be based on solid ground. We are in a bubble now and just waiting for it to pop.
We are currently in the Biggest Global Debt Crisis of our Generation. Yet poster after Poster will say don't Worry be Happy. So just what in Hades does that solve? Poster after Poster will say the Sun will still shine Tomorrow, and just what does that solve either.
The Biggest bit of Idiotic talk that we currently see, how any Correction will be just a Drop in the Bucket compared to the Gains over the Last Few Years. And they know this HOW? We all know the Market Indexes have set Records. We have all benefited Greatly from that Run. However We can all suffer greatly from it's demise. Again, bad Debt which by the Way caused the Great Recession, has Soared 40% since. What have we done to solve that problem. Nothing!
And, that's reason for anyone to Care Why? Folks like him are not any better then folks calling for DOW 9,000. The Reality which the World is facing is quite Different then what may or may not happen in Markets far more Determined by Crack-Dollars then Real Earnings.
The Problem is, when it fails, the top 1% will still make out like Thiefs in the Night while everyone else will pay the ultimate Price. Has anyone Ever seen what a Global Default looks like. Ever wonder what the New World Order might look Like. Well since we are more concerning with DOW whatever instead of actually solving anything, we might see Both.
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An interest rate tease in The Wall Street Journal sends the market into an optimistic tizzy -- but one that doesn't end quite at the top.
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