Wharton finance professor Jeremy Siegel sees U.S. stocks rising 10% to 12% by year-end, despite any blowback to the world economy resulting from the Brexit – the U.K.’s looming withdrawal from the European Union. Siegel also says, in this Knowledge at Wharton interview, that the swoon in European stocks that followed the vote offers a buying opportunity. “If you were a longer-term investor, you are able to get European stocks … at around 12 [times] price-earnings ratio … an extremely good valuation in low-interest-rate environments.” He does not expect any other countries to leave the EU, and says a Fed rate increase this year remains possible, though not likely until after September.

An edited transcript of the conversation appears below.

Knowledge at Wharton: We’re here with Wharton finance professor Jeremy Siegel to talk about Brexit, with the U.K. voting to leave the European Union, and what it means for markets.…