Jeremy Siegel, finance professor at the University of Pennsylvania, believes the bull market for stocks is firmly intact, predicting on CNBC
that the Dow Jones Industrial Average will reach 20,000 next year.
Meanwhile, activist investor Carl Icahn told Reuters
a "major correction" is likely coming in the next three to five years. "It's really a question of when that is going to happen, in my opinion. It could be three years, it could be three months, it could be three days."
So who's right? Both men, says Mitch Tuchman, CEO of MarketRiders, an online investment service. "The stock market could go higher and higher still. And, yes, at some point it will go lower," he writes in an article for MarketWatch
"It's a question of time frame and perspective, an issue both Icahn and Siegel recognize. Icahn is correct in surmising that the bull run we've seen since 2009 is getting old and, probably, setting us up for disappointment at some point in the future."
As an investor, "don't, by any means, delude yourself into thinking that you can time the market any better than Carl Icahn or Jeremy Siegel," Tuchman warns. "They certainly don't think it's possible."
Many investors remain bullish on stocks for the short term, particularly when it comes to the retail sector.
"The backdrop for holiday sales and retail is setting up to be a very good holiday season," David Lyon, an investment specialist at JP Morgan Private Bank, tells Bloomberg
"That additional cash or income that consumers will have to spend from lower energy prices at least for a quarter or two will be a fantastic tailwind for retailers."
© 2024 Newsmax Finance. All rights reserved.