Investing guru Jeremy Siegel predicts that stocks could rally 10 percent into year's end thanks to the Trump effect.
"I would say corporate tax reform could add another 10 percent to the market even this year," Siegel told CNBC.
A business tax-reform deal "looks very likely to get done," said the University of Pennsylvania finance professor who always claims stocks are the best long-term investment.
A 10 percent jump would put the Dow around 24,650 and the S&P 500 at 2,760 based on Wednesday's closes, CNBC explained.
"There's new hope that taxes really have a chance to be done. I remained steadfast throughout some of the bleak days in the last few months when no one thought anything could be done," the Wharton School finance professor said.
"There's a little bit more optimism now. I think a corporate tax deal will be done, and I think that will be positive for the equity market," he said.
Siegel explained his bullish ideas about stocks 22 years ago in a book “Stocks for the Long Run,” which showed that over two centuries, stocks have gained 6.7 percent a year after adjusted for inflation. That’s better than the 3.6 return for U.S. government bonds and 0.6 percent for gold.
Meanwhile, uncertainty about how the United States will cope with growing tumult in the world has not dampened Warren Buffett's optimism for the country's prospects over the long term, even 100 years into the future.
"Whenever I hear people talk pessimistically about this country, I think they're out of their mind," Buffett, the chairman of Berkshire Hathaway Inc, said Tuesday night.
Buffett said he expects the Dow Jones Industrial Average to be "over 1 million" in 100 years, up from Tuesday's close of 22,370.80. He said that's not unreasonable, given how the index was roughly 81 a century ago, Reuters reported.
(Newsmax wires services contributed to this report).
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