Wall Street strategist Ed Yardeni has expressed strong optimism about the stock market's future, predicting that the S&P 500 index could reach 10,000 by the end of 2030. This represents a 66% increase from current levels, reflecting growing optimism following the U.S. presidential election.
Yardeni has also revised his target points for the S&P 500 for the years 2024, 2025, and 2026 to 6,100, 7,000, and 8,000 respectively. His report highlights investors’ excitement about a more business-friendly government, which is expected to promote tax cuts and deregulation.
Following the presidential election, U.S. stocks saw significant gains, with the S&P 500 posting a 4.7% rise, marking its best weekly performance of the year. Other strategists, including Julian Emanuel from Evercore ISI, also raised their forecasts, echoing historical data that suggests the bull market is just getting started.
Yardeni's projections are based on the belief that economic policies, particularly the reduction of corporate tax rates, will enhance U.S. corporate profitability. A resolution to conflicts in regions such as Ukraine and the Middle East could further boost the stock market.
While Yardeni anticipates no bear markets until the end of the decade, he cautions about potential market corrections due to overly bullish sentiment. Nevertheless, he believes consumer and business optimism is likely to improve, reminiscent of the trends observed when Trump was elected in 2016.
