Dow 22K is closer than you think—here's why: Jeremy Siegel

The markets are climbing to new highs, and another milestone for the Dow Jones industrial average may not be far away, according to the Wharton School's Jeremy Siegel.

If President Donald Trump follows the "Republican agenda," Siegel said, then Dow 22,000 is on the horizon. That's a nearly 8 percent rise from current levels.

If Trump does "lower taxes, lower regulations, that's another 10 percent on this market, I say, quite easily," Siegel said Monday on CNBC's "Trading Nation."

Taking down the Dodd-Frank Wall Street Reform and Consumer Protection Act, which increased regulation within the financial services industry in the wake of the financial crisis, has been a tenet of Trump's platform. Investors flocked to the financial sector after the election because of the rising interest rate environment and in anticipated loosening of regulation.

Trump has also vowed to cut corporate taxes, which would prove favorable for American equities.

However, if Trump moves more aggressively on protectionism, spurring a trade war or a currency war, and then "it's a very different picture," Siegel said. Although the likelihood of such events is slim, he said, that remains the biggest risk to the markets' rally.

Siegel has made similar calls in the past. In July 2015, he told CNBC that the Dow could hit 20,000 by the end of that year. When it didn't by November, he reiterated his belief in Dow 20,000, but pushed his timeline back to 2016. The Dow broke the mark on Jan. 25, 2017.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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