Dow 17,000 This Year: Siegel

Money sitting on the sidelines is poised to get back into the market and send stocks to record highs, noted bull Jeremy Siegel said Thursday on CNBC.

"I actually think this is a short-term buying opportunity," said the finance professor from The Wharton School of the University of Pennsylvania.

On "Fast Money," Siegel raised his year-end target on the Dow Jones Industrial Average to 17,000 from a slightly less bullish 15,000 call in January.

(Read More: Dow 15,000 by Year End, Says Professor Siegel)

Siegel also said that he expected the S&P 500 would climb to 1,700 this year.

"I think the market has actually held up very well, given the hit from Cyprus and Europe today," he said.

"A banking crisis of major proportion" could put an end to the current bull market, Siegel added, although he said that he believed European Central Bank President Mario Draghi would "do what it takes" to prevent that from happening.

Siegel also identified why Europe's woes could benefit the market.

"I think that's going to bring dollars into the U.S.," he said.

Despite negative revisions so far, Siegel estimated that S&P 500 earnings for 2013 would clock in at $110 per share.

Solid earnings coupled with multiple expansion to 16 times forward earnings brings the S&P to 1,700 by year end, by Siegel's calculations.

"Multiple expansion is part of the game over here," he said.

Trader disclosure: On March 21, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long JPM; Jon Najarian is short GLD Puts; Jon Najarian is long SBUX; Jon Najarian is long NKE; Jon Najarian is long SSRI; Jon Najarian is long MU; Jon Najarian is long EGO; Jon Najarian is long UA; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Keith McCullough is long MS; Keith McCullough is long TLT; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short JCP; Karen Finerman is short SPY; Karen Finerman is short MDY;