Uncertainty is taming one of the stock market's biggest bulls — it's the reason behind Jeremy Siegel's decision to trim his year-end forecast.
"Although a number of firms have beat their third-quarter estimates, guidance has not been overenthusiastic.... We have the election to go through. You have the Fed hike to go through," said the University of Pennsylvania Wharton School finance professor on Thursday on CNBC's "Trading Nation." "It's going to be harder to make headway."
Siegel, who has had a 2,300 year-end price target on the S&P 500 for much of the year, now predicts the index will close between 2,250 and 2,300, just a few percentage points higher than current levels.
The activity surrounding the 10-year Treasury isn't making a case to buy stocks either. It's up more than 5 percent over the past five sessions. This as the S&P stumbles more the 1.4 percent since earnings season began earlier this month.
"You need bang-up earnings and super guidance to get over the hump of a rising 10-year.... That's the competition," said Siegel, who believes the next interest rate hike will happen in December. "People are coming to the conclusion, 'Yeah, the Fed is going to hike,' and then the question is, 'How much are they going to hike in 2017.' That's the anxiety that's putting pressure on these stock prices."