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.

By MSN Money Partner Jul 3, 2014 12:16PM
Credit: © Matt Stroshane/Bloomberg via Getty Images
Caption: Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton SchoolBy Bruno J. Navarro, CNBC

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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24Comments
Jul 3, 2014 3:46PM
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We need to rescue our country first.  1700 won't mean anything if we don't!
Jul 3, 2014 5:54PM
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Answer: Quite likely at this rate.  As we know, there are calories and so-called
empty calories.  Its becoming apparent that this diet may be consisting of the
latter.   Nonetheless,  those calories work the same as each other, only the
latter fatten you up faster.  Stay aware, fellow commentators.  Know when to
leave the dinner table.
Meantime....
Happy BIrthday, America! 

Cheers to all Vets, past and present, who made these blogs and all the
variegated manner of insights and onslaughts contained therein possible. 

Jul 3, 2014 5:26PM
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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.

Jul 3, 2014 4:30PM
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20,000 in 5 months...GFY! Keep dreamin' brotha!
Jul 3, 2014 5:12PM
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Market timing is a fool's game. And unless you're an active trader or in retirement, you should hate these high stock prices.
Jul 4, 2014 7:59PM
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I can do 18,,,,,,,,,It will cost another TRILLION of QE
Jul 4, 2014 11:58AM
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Whatever the small percentage of Billionaires that control it....it will do. When it gets absurdly high and people are all in hoping to get rich, the bottom will fall out; again.
Jul 3, 2014 5:36PM
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The feds lie about the job situation and the market jumps.  What will these geniuses think of next?
Jul 4, 2014 5:19AM
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The Warning Signs of a Massive Bubble always appear long before the markets Respect them. Aunt Yellen recently stated it's not her Job to regulate Bubbles and excess Risk Taking in the Markets. So it's Fine and Dandy for her, Uncle Ben, and CrapSpan to enact polices that lead to massive Bubbles but when they happen, these Morons get to claim they never saw it coming and that it wasn't their Fault. Siegel is the Worst Kind of Fraud and because of Crack-Dollars from the Global FEDS, he get's a Free Pass up until this House of Cards unravels.

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!

Jul 3, 2014 6:17PM
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"Jeremy Siegel (pictured) said Wednesday that he expected the market's stampede to continue, easily pushing the Dow Jones Industrial Average past 18,000 by year end."

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.
Jul 3, 2014 5:40PM
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I HOPE the United States Stock Market CRASHES!!!!!!! and the Economy COLLAPSES!!!!!!
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