CNBC’s Becky Quick interviewed Wharton professor Jeremy Siegel this week to get his view on where the market is headed after its strong performance in January.
Siegel said investors shouldn’t back out of the stock market and pointed out that despite the latest weak GDP report, 70% of S&P 500 firms beat earnings estimates. “In a quarter that was much lower than economists thought, the earnings haven’t been bad…think if we can get, maybe three percent growth in 2013, which I think is possible,” Siegel added.
Siegel estimates earnings per share will be 5-8 percent higher, and along with expanding earnings multiples, will propel the Dow well above 15,000 in 2013.
Siegel commented on his forecast early last year where he predicted there was a 70% chance the Dow would close above 15,000 based on valuation [link].