The stock market could rise another 8% to 10% this year, according to Wharton professor Jeremy Siegel.
The top economist pointed to a strong economy, which could drive strong growth in corporate profits.
A strong economy is much better for stocks than a quick rate cut by the Fed, he warned.
Stocks could have another 10% to go this year — and the bull market in stocks could continue regardless of what the Fed does with rates, according to Jeremy Siegel.
The top economist reiterated his optimism about the market, despite stellar returns in 2023 and disappointing profits from some major tech companies, such as Tesla and Intel so far this earnings season. Of S&P 500 companies that have reported profits so far, 69% have exceeded expectations, according to FactSet, lower than in previous years.
But stocks could still rise 10% in 2024, Siegel predicted during the period an interview with CNBC.
That’s because stocks are still fairly valued, even if they aren’t exactly cheap. Even if some growth names trade at multiples of 20 times earnings, there’s still room to run, Siegel said.
Fair valuations will be further boosted by a strong US economy. According to the Commerce Department, real GDP grew 3.3% year-on-year from the previous quarter, reflecting continued growth despite tighter financial conditions in the economy.
All this indicates that the chance that the The US will avoid a recession this year, with hopes for a soft landing growing “stronger and stronger” by the day, Siegel added.
“I still think we can get 8%-10% this year. I think the economy is still very strong. I think we…