jeremy siegel office the show earlier.ng to the wall street journal they're calling for gains of 5 percent or less. the s&p stock index up 12 percent this year. how should you be positioning your portfolio for the year ahead. zoltar. research president. his predictions. a measly 5 percent? jim, i guess you're about to throw freezing cold water on even that. >> yeah. on one hand, you can say that's contrarian when these guys have a low forecast, the market tends to do better. if you look at the fundamentals that are based on that, you understand why. i think there's some logic to it. earnings growth has been decelerating in recent quarters and months. the strong dollar is working badly against it. all the foreign companies get translated into a foreign currency that means they get less. on top of that, the world economy is slowing down. japan, europe, canada, a lot of markets are slowing. liz: but isn't the united states looking good. >> yeah, but half of the revenue comes from foreign sales. into a weaker currency, transla

we have jeremy siegel with us. he's been a die hard bull for a few years now but does he think the s&p will go higher highs next year? jeremy speaking with us exclusively next here. >> also ahead, general electric updating the compensation plan doesn't look like he's going anywhere any time soon. still someone says he needs to step up to keep the job. both sides of his future and what happens to ge shares. don't go anywhere. how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. toasty or frosty? exactly the way you want it ... until boom, it's bedtime! your mattress is a battlegr

anyway, despite the lack of big swings lately, jeremy siegel still believes we're going to hit a dow eeks. jeremy, when we had that 9% pullback in the s&p, were you -- like, were you dialing cnbc to say that you were going to pullback on your 18,000? did you have any self-doubt? were you waking up in the middle of the night in a cold sweat? were you questioning yourself at all at that time? >> well, i will admit when that ebola scare hit, i wasn't sure whether we were going to do it by december 31st. i had a feeling that we were going to control that epidemic. and i certainly think we have. so, yeah, there were a few seconds where i wobbled a bit, joe. on that. but once the ebola scare went away, you know, there's no reason why we couldn't hit. all we need is a normal rally actually from thanksgiving to new year's. and we're virtually there at 18,000. >> jeremy, i had the same thought. ebola was truly that wild card that none of us really understood because right at the height of that when i guess the individual that -- unfortunate individual had passed away and then a couple of nurse

and jeremy siegel is getting closer and closer to that 18,000, right? >> i think we've had our 27th and our 44th highs for the year for the s&p and for the dow. >> i remember you said 26 the other day. so it sounds like you just are like a genius of something. >> month, no, i actually -- >> you remember 26 and 43. anyway, we'll take that on a friday. we're hoping for santa claus to arrive at some point. oil, once in a while with it goes up, that is bullish. >> china, all of a sudden, it's 77 bucks. 1.24. okay. that's good. keep going. keep going. 119 coming up. gold, which is back below 1200, but up a little bit today. >> china cutting rates and the ecb president mario draghi says the central bank is ready to react in europe. >> let's start with china. the other significant -- i think it's significant thing out of china is the central bank is now going to allow banks to raise how much they charge, pay for deposits from 1.2 times -- from 1.1 times the rate, the deposit rate, to 1.2 times. okay. so it's notice a huge move. but one of the things economists

people used to laugh at jeremy siegel when he said 18,000. but with the dow at the enof the year, he might be right. >> october didn't quite make the -- >> almost. >> but all the people say we're due to have this correct. they need back to the early '90s where we sent 720 days without a construction. then we went 1600. i think we're going to see this in a 10 ers to 15% pro year, moving higher for the next three or four years. >> why? why are you looking at double digit gains for the next three or flower four years? >> if you look at where the bond yields are versus the cost in stocks, the cost of capital for a company, which is what the company is going to tell for, the gas is too wide. while people think that peak margin companies can't squeeze more out. ceos are doing a brilliant job of managing expenses and we think margin res going to continue to edge higher. and we think we'll get everybody back. >> we've heard a lot of var ages on that. thinking there is no alternative, stocks are the only place to be. but you are looking at the fed pro