“Stocks have risen, will continue to climb and likely break records this year, says Jeremy Siegel, a market historian at the University of Pennsylvania’s Wharton business school, author of the book “Stocks for the Long Run.”
“I think there’s a good chance that by the end of this year the Dow will break its all-time high,” says Siegel, according to the Los Angeles Times.
A look at the stock market’s history shows stocks are due to post extended gains and not just a bump up.
Long periods of lackluster movement are often followed by multiyear upturns, which is the case today, Siegel says.
The broad Standard & Poor’s 500 index of blue-chip stocks finished flat in 2011, despite a big jump in corporate earnings.
So far in 2012, the S&P 500 is up over 9 percent.
Other high-profile market watchers are expecting momentum to build and more investors to return to the stock market.
“We’re getting close to changing the national conversation,” says Jim Paulsen, chief investment strategist of Wells Capital Management in Minneapolis, the Times adds.
“For three years, the talk among investors has been ‘Are you cautious enough?’ and ‘Are you prepared for the next correction?'” Paulsen says.
“As we get closer to new all-time highs, that’ll change to ‘Are you missing out?'”
Equities got a big endorsement from legendary stock picker Warren Buffett.
“Equities are still cheap relative to any other asset class,” Buffett tells CNBC.
While the optimal time to get into the market has passed, there’s still time, Buffett adds.
“If you wait to see the first robin, spring will be over. Well spring is over but we are not in the dead of winter either,” Buffett says.”
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