Wharton Professor Says Market to Rise 10% if Trade Tensions are Resolved

The stock market could increase another 10 percent this year if the U.S. were to settle its trade war with China and reach a new North American Free Trade Agreement, Jeremy Siegel told CNBC on Thursday.

The S&P 500 was already 7 percent higher for the year as of Wednesday’s close.

“The next few months are going to be a challenge,” said Siegel, the Wharton School finance professor who for years correctly called the march higher on Wall Street. He recently became a bit more cautious.

“But if we can get China [and] NAFTA settled, I see a 10 percent pop in the market because I think that’s the kind of 800-pound gorilla keeping a lid on prices now,” Siegel said on “Squawk Box.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza