Dow 20,000? Why Not?

Stock prices are reasonable relative to earnings and the returns from alternatives are meager. So, there's your upside potential.

During a recent TV interview, I was asked whether I thought the Dow Jones industrial average could reach 20,000 in 2015. “Most certainly,” I answered—and immediately headlines reported that Siegel was predicting Dow 20,000 for 2015. Of course, saying that the Dow could reach 20,000 is about as meaningful as saying that it could snow in Central Park in July. Can the Dow really hit that level?

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Jeremy J. Siegel
Contributing Columnist, Kiplinger's Personal Finance
Siegel is a professor at the University of Pennsylvania's Wharton School and the author of "Stocks For The Long Run" and "The Future For Investors."