2016's rough start continued today as the markets tumbled points on uncertainty surrounding China. Despite all the turmoil, Wharton School Professor Jeremy Siegel doesn't find reason to worry. He joined the "Halftime Report" to discuss why concerns are overblown.

Professor Siegel believes a less aggressive Fed and strong earnings outside of the energy sector will be positive catalysts in 2016. Not only does he not see a recession ahead, he predicts the S&P could rally 10% this year. This is in stark contrast to "Gloom, Boom, and Doom" publisher Marc Faber who, also on today's show, predicted a 20-40% decline in stocks for the year.

Professor Siegel also weighed in on the devaluation of the Chinese Yuan. He argues that it is still a "totally manipulated currency," and that it was a "mistake for the IMF to add it to the reserve basket." While he believes this points to a Chinese slowdown, he says the consequences in the U.S. will be minimized. The one notable area that he believes will be affected is the Fed. Central bankers are already struggling to get inflation up to target, and a lower Yuan will push deflation on the rest of the world.

Trader disclosure: On January 7, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Josh Brown: Long AAPL, BABA, DE, DNKN, FB, JMBA, LOW,NFLX, SAM, SHAK, SPWR, TWTR, XLE, XON

Joe Terranova: Long VRTS

Steve Weiss: Long AAL, C, DLTR

Sarat Sethi: LongAA, AAL, ACN, BWA, CSCO, DAL, DGI, DLPH, F, FB, GE, GM, GOOG, HAR, HON, LB, M,MSFT, QCOM, SJM, UAL, V, WFM, YHOO, YUM

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