Wharton Professor Jeremy Siegel, who had grown cautious on stocks recently, says the Federal Reserve’s lowering of interest rate projections has him feeling better.
“I think the Fed gets it; mostly gets it,” Siegel tells CNBC. “I thought they were being way too aggressive in their projections of interest rates. And they have come down on that.” Siegel thinks 20,000 is fair value for the Dow Jones Industrial Average, and he thinks we could reach that level by year-end. But he also says we seem to be in a “choppy market” in the near-term, with range-bound trading of 17,000 to 18,500. Siegel also said that the dollar’s sharp rise has been “tantamount to a Fed tightening of maybe up to 50 basis points.” Given the dollar’s impact on corporate earnings, he said we need to see the dollar stabilize — and perhaps decline a bit — before the market takes off.