Longtime stock-market bull Jeremy Siegel on Monday warned that equities could be in for a correction amid a possible rate hike by the Federal Reserve next month. “The next six or seven weeks are going to be very rough,” the well-known Wharton School finance professor told CNBC Monday afternoon. Jitters over a likely September rate hike combined with weaker corporate earnings due to falling oil prices, a strong dollar and seasonal weakness in late August and September will make it difficult for stocks to work “much higher” over the next six or seven weeks, he said. Once a rate hike is out of the way “and world doesn’t end,” a “nice rally” could follow in the fourth quarter, he said. Siegel said he’s sticking with his call for the Dow Jones Industrial Average to hit 20,000, but said that target would be difficult, though not impossible, to hit by the end of the year.
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From:: Stock Market News