The “Roaring 20s” are back and set to take the S&P 500 to new heights, according to market veteran Ed Yardeni. Yardeni Research president predicts the benchmark index could hit 8,000 by the end of this decade, driven by AI and improving corporate earnings.
In an interview on the David Lin Report, Yardeni reiterated his bullish forecast on stocks, stating that the S&P 500 is on track to reach 6,000 by the end of 2025 and potentially rally to 8,000 by the end of the decade, representing a 46% upside for the index.
Yardeni believes that the current economic environment resembles the “Roaring ’20s” era, fueling his optimism for the market. Despite initial fears of a recession, the US economy continues to expand, with GDP expected to grow by 3% this quarter, according to Atlanta Fed economists.
Additionally, strong corporate earnings expectations and the growing excitement around artificial intelligence are contributing to the positive outlook for stocks. Yardeni highlighted the impressive earnings reports from tech companies like Nvidia and Oracle, attributing their success to the ongoing technology revolution.
While the market faces some risks, including the possibility of a “melt-up” followed by a “meltdown,” Yardeni remains confident in the bullish trajectory of stocks in the coming years.
With the “Roaring 20s” making a comeback, investors can look forward to potential growth and new highs in the S&P 500 as AI and corporate earnings drive the market forward.
