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Jeremy Siegel says the market will surge 'another 10%' this year on tax reform

  • Wharton professor Jeremy Siegel predicts Congress will pass corporate tax reform this year, sparking another big market rally.
  • "I see a lot of cash on the sidelines that could come in later ... stocks are still the place to be," Siegel said.

The market will surge this year on tax reform, Wharton School finance professor Jeremy Siegel told CNBC on Wednesday.

"If we get tax reform on the corporate side, which I still believe is an odds-on proposition this year. ... If we can get the corporate rate down to 20 percent, you can easily see another 10 percent in the market this year," Siegel said on CNBC's "Halftime Report."

The longtime bull said the market's current rally was mainly driven by low interest rates and the weakening dollar, which benefits U.S. multinational companies.

The S&P 500 has rallied 10.6 percent this year through Tuesday.

Siegel also pointed out investors are still skeptical about the market rally and sentiment has not reached "euphoric" levels.

"I see a lot of cash on the sidelines that could come in later," he said. "Stocks are still the place to be."

Siegel is known for his bold bullish market predictions. His investing book "Stocks for the Long Run" released in 1994 recommended investors take a long-term optimistic view on the stock market.

In July 2015, he said on 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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