Ed Yardeni, the renowned economist and market expert, has made a bold prediction for the future of the stock market. He believes that the S&P 500 could surge by a whopping 26% by 2026 to 6,500.
What Happened: Yardeni, the president of Yardeni Research, has been steadfast in his bullish outlook. He recently reiterated his year-end S&P 500 price target of 5,400, a figure he initially proposed a year ago. However, he now considers this estimate to be conservative.
“I think this is a long-term bull market. I got still 5,400 by year-end and that was a pretty bold call a year ago, but right now that’s looking pretty conservative, and why not more?” Yardeni told CNBC on Wednesday.
With the S&P 500 currently standing at around 5,150, Yardeni’s forecast suggests a potential 26% increase over the next two years. He attributes this optimism to the market’s improving breadth and the possibility of a broader market.
Yardeni also noted the high bullish sentiment among investors, suggesting that there may not be enough bears to convert into bulls to sustain the momentum. He views the broadening of the market as a positive sign and believes that this bull market could persist until the next recession, which he does not foresee happening in the next one to two years.
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Why It Matters: Yardeni’s prediction comes amid a period of market uncertainty. Earlier in March, he highlighted signs of vulnerability among the stock market’s beloved Magnificent Seven, including tech giants like Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA).
Yardeni’s current forecast contrasts with the cautious investor sentiment often associated with market highs. He has consistently maintained a positive outlook on the stock market, offering 12 compelling reasons fueling his optimism, including the normalization of interest rates and robust consumer purchasing power.
However, this bullish forecast is not shared by all. Technical analyst Milton Berg recently warned of a potential 60% market crash, citing concerns of an imminent recession. His prediction suggests a significant downturn in the market, a scenario that directly contradicts Yardeni’s optimistic forecast.
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FAQs
Ed Yardeni, the renowned economist and market expert, has made a bold prediction for the future of the stock market. He believes that the S&P 500 could surge by a whopping 26% by 2026 to 6,500. What Happened: Yardeni, the president of Yardeni Research, has been steadfast in his bullish outlook.
What is a bull market quizlet? ›
Bull Market. A period of increased stock trading and rising stock prices.
What is a long term bull market? ›
A bull market is typified by a sustained increase in prices. In the case of equity markets, a bull market denotes a rise in the prices of companies' shares. In such times, investors often have faith that the uptrend will continue over the long term.
How is the bull market related to speculation? ›
A bullish speculator expects the prices of securities to rise. A bull is a speculator who buys securities with the hope of selling them at a higher price in the future.
How high will S&P go in 2024? ›
The high-water mark for stock projections in 2024 has once again moved up. In a note to clients on Monday, Wells Fargo's head of equity strategy, Christopher Harvey, boosted his year-end target for the S&P 500 (^GSPC) to 5,535 from 4,625.
Is now a good time to invest in the S&P 500? ›
The S&P 500 has hit 20 intraday highs in 2024. As stocks climb higher many stock valuations may be stretched beyond their intrinsic value. But it's still possible to find great investment opportunities as the stock market hits new all-time highs.
Is the bull market good or bad? ›
Generally, a bull market occurs when there is a rise of 20% or more in a broad market index over at least a two-month period.” During a bull market, investors are generally enthusiastic about a strong economy and solid job growth.
What is typically happening in a bull market? ›
In bull markets, a rising tide which lifts all boats tends to apply. While not all stocks will rise every day, the general direction tends to be up. Money rotates constantly and certain sectors will rise more than others, but eventually all sectors tend to rise in the context of a bull market.
What does a bull have to do with the stock market? ›
A bull market is commonly defined as a period of time when major stock market indexes are generally rising, with market indexes eventually reaching new highs. (Reminder: A stock market index is a collection of stocks that are tracked over time to gauge their overall performance.
What was the long bull market? ›
The current bull market that started in March 2009 is the longest bull market in history. It's topped the bull market of the 1990s that lasted 113 months. However, the current bull market, which has seen the S&P 500 rise 330% in its 10+ years, is still second to the 90s bull run, which returned 417%.
With stock indexes at all-time highs, it seems we are in the midst of a new bull market. While much of the market's recent gains have come from a handful of stocks, the rally has begun to broaden in recent months. Expectations of an earnings rebound in 2024 suggest earnings could continue to drive the market higher.
Are we in a new bull market? ›
This Bull Market Is Still Young
The current bull market started in October 2022, which means it is now just less than 19 months old. If it ended now, it would be the shortest bull market ever.
Is speculation good or bad? ›
The agency emphasizes that speculators serve important market functions, but defines excessive speculation as harmful to the proper functioning of futures markets.
Why is a bull market good for the investor? ›
Investor confidence will also tend to climb throughout a bull market period. The overall demand for stocks will be positive, along with the overall tone of the market. In addition, there will be a general increase in the amount of IPO activity during bull markets.
What are the risks of a bull market? ›
Risks of investing during a bull market
Overvaluation: During bull markets, asset prices can become overvalued due to excessive optimism and speculation. This can lead to a correction or market downturn, when prices return to more reasonable levels, which can lead to investors to experience significant losses.
How much will the S&P 500 be worth in 2030? ›
Stock market forecast for the next decade
| Year | Price |
|---|
| 2027 | 6200 |
| 2028 | 6725 |
| 2029 | 7300 |
| 2030 | 8900 |
5 more rowsApr 26, 2024
According to Luxembourg-based ISABELNET, a firm that has been doing private research on the U.S. stock market since 1998, consensus analyst estimates for the S&P 500 are $242 for 2024 earnings and $278 for 2025.
What is the stock market prediction for the next 5 years? ›
Thus, we expect growth to eventually slow to 1.4% in terms of an annual average number in 2025, before accelerating again in 2026 through 2028 on the back of eventual Fed rate cuts. Now inflation, we do expect inflation to essentially return to normal this year. Our latest forecast is 2.2% for full-year 2024.
How much does the S&P 500 grow in 5 years? ›
5-year, 10-year, 20-year and 30-year S&P 500 returns
| Period (start-of-year to end-of-2023) | Average annual S&P 500 return |
|---|
| 5 years (2019-2023) | 15.36% |
| 10 years (2014-2023) | 11.02% |
| 15 years (2009-2023) | 12.63% |
| 20 years (2004-2023) | 9.00% |
2 more rowsMay 3, 2024
