Finance guru Jeremy Siegel says the Dow could increase another 6% this year and at least 10% next year. The index has already moved up 25% so far this year, and he sees it between 16,000 and 17,000 by year end.
The Wharton professor, speaking on CNBC on Monday, reminded investors that the final two months of the year “are usually pretty good months.” Plus, no major uncertainties hang over the markets, “at least in these two months coming up,” he says.
“I think the economy is going to hold on here,” Siegel said. In 2014, he sees GDP improving to 3% or as high as 3.5%.
The Dow Jones industrial average was up about 22 points, and trading above 15,590 mid-Monday.
Siegel sees tailwinds for the Dow as fourth-quarter results are released. In addition, dividends have improved 10%-15% this year and are “rising strong.”
“This is a very favorable climate still for equities,” Siegel stressed.
Meanwhile, the Standard & Poor’s 500 index was up more than 23% in 2013 through Friday.