Don't worry, stocks may rise 10% this year: Siegel

Jeremy Siegel
Siegel: Market will move 8-10% this year   

A rocky start to 2016 trading failed to deter one fervent bull.

Major U.S. stock averages slid more than 1.5 percent Monday, the first trading day of the year, following the lead of global markets, which fell after a sell-off in China. Still, U.S. markets could climb 8 to 10 percent this year, contended Jeremy Siegel, a finance professor at the University of Pennsylvania's Wharton School.

"I don't think it's going to be all that bad," he told CNBC's "Closing Bell" of China's effect on markets.

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Siegel believes that, while the U.S. economy looks "better than a lot of people fear," global factors may deter the Federal Reserve from hiking interest rates as much as previously signaled. While some central bank officials have outlined an intent to raise rates four times this year, Siegel contended it will only happen twice, propping up markets.

Low oil prices battered energy sector earnings this year, and if the commodity stabilizes, it could give stocks a further boost, he said.

Another market watcher did not express as much optimism as Siegel. However, he noted that Monday's selling was likely overblown.

"I don't see a reason why it should have sold off this much," John Manley, chief equity strategist at Wells Fargo Funds Management, told "Closing Bell."

He added that he does not "see signs of panic."