Jeremy Siegel on the Dow Reaching 11,000

The Dow has closed above 11,000, the European Union is bailing out Greece and the U.S. economy seems to be perking up. Is the future as bright as it looks? In fact, it looks pretty good, says Wharton finance professor Jeremy Siegel. While the Dow's 11,000 close doesn't mean much to professional market watchers, it can give ordinary investors a psychological boost, and it focuses attention on the stock market's fine showing over the past year. According to Siegel, the U.S. economy is in a self-sustaining recovery, no longer dependent on government stimulus -- and while the housing market could take years to make up recent losses, the economy should do well. With interest rates likely to rise, it's a risky time to invest in bonds, but stocks could end the year 8% to 10% higher than they are today, Siegel said in an interview with Knowledge@Wharton.

An edited transcript of the conversation can be found here.