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 of Yardeni Research told CNBC on Wednesday that the S&P 500 could jump 26% through 2026 to 6,500. "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 said.
What is the stock market outlook for 2026? ›
A 34% gain in the S&P 500 by the end of 2026 is possible with stocks in the middle innings of a long-term bull market, BofA technical strategist says. The long-term bull market in stocks is about to turn 11 years old, according to Bank of America.
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.
Will stocks go down in 2024? ›
Stocks are up 8.8% in 2024 through May 7, as measured by the S&P 500, but markets have cooled and the large-cap index is down 1.3% in the second quarter. Some investors are inching toward the sidelines amid worrisome economic news: slowing economic growth, a softening labor market and rising core inflation.
Is now a good time to invest in the S&P 500? ›
Key Points. 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.
Should I pull my money out of the stock market? ›
It can be nerve-wracking to watch your portfolio consistently drop during bear market periods. After all, nobody likes losing money; that goes against the whole purpose of investing. However, pulling your money out of the stock market during down periods can often do more harm than good in the long term.
What stock will grow the most in 10 years? ›
9 Best Growth Stocks for the Next 10 Years
- AbbVie Inc. (ticker: ABBV)
- Adobe Inc. (ADBE)
- Apple Inc. (AAPL)
- Booking Holdings Inc. (BKNG)
- Costco Wholesale Corp. (COST)
- DraftKings Inc. (DKNG)
- Enphase Energy Inc. (ENPH)
- Nvidia Corp. (NVDA)
Prediction: These 2 Growth Stocks Could Triple By 2030
- Axsome Therapeutics. Axsome Therapeutics has delivered above-average returns in the past six years. ...
- Shopify. Shopify, too, has been a market-beater despite significant pullbacks at various times.
A bull market is generally a good thing because it can indicate economic growth and optimism among business and consumers. It may also result in equity growth and higher dividends, depending on the stock and the sector.
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 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 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%.
What does long term bullish mean? ›
When an investor is bullish on a company for the long term, it means they have a favorable view of the company's future. They may also believe the stock is currently undervalued at its current share price. The term could also be applied to a sector, industry, or the viability of a technology.
Are we in a bull market in 2024? ›
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.
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.
What is the S&P 500 expected to do in 2024? ›
Wall Street's high mark for stock market returns in 2024 keeps moving up. BMO Capital Markets chief investment strategist Brian Belski boosted his year-end price target for the S&P 500 (^GSPC) to 5,600 from 5,100 in a research note on Wednesday, noting that momentum in the market is "likely to persist."
