Wharton's Siegel: Stocks 'Not Cheap' on Way to Dow 20,000

The video discusses the current state of the stock market, highlighting that while stocks are not cheap, the Dow is expected to reach 20,000. The path to 21,000 will be more challenging, requiring proof of earnings and positive economic changes. Market indicators like the relative strength index and Shiller Cape ratio are analyzed, with a focus on the impact of corporate tax reform. The discussion also covers the potential effects of rising interest rates on stocks, bonds, and real estate, noting that while 3% yields may seem high, they are not necessarily a challenge for stocks. The financial sector is expected to benefit from rising rates.

What is the main factor that could make reaching 21,000 on the Dow more challenging?

• High interest rates

• Lack of earnings growth

• Rising inflation

• Increased regulation

Which indicator is mentioned as being at its highest in 20 years?

• Dow Jones Index

• Shiller Cape Ratio

• Relative Strength Index

• S&P 500

What is the expected impact of corporate tax reform on S&P earnings?

• Decrease by 5%

• Increase by 10%

• Remain unchanged

• Decrease by 10%

Which sectors are likely to be most affected by rising interest rates?

• Technology and Healthcare

• REITs and Utilities

• Energy and Materials

• Consumer Goods and Services

How does the speaker view a 3% Treasury yield in the context of stock challenges?

• As a significant challenge

• As a minor challenge

• As not a challenge

• As an opportunity