Source: Fortune.com
Summary
Yardeni Research President Ed Yardeni has increased his year-end forecast for the S&P 500 to 8,250 from 7,700, citing recent earnings as a driver of a meltup. He is now the most bullish among top Wall Street forecasters. Yardeni sees earnings per share among large-cap companies at $330 this year and $375 in 2027. He assumes the economy will remain resilient, and so will earnings, and has increased the probability of the Roaring 2020s continuing to 80%.
Our Reading
The announcement sounds familiar.
Yardeni’s forecast tops views at Oppenheimer, Deutsche Bank, Morgan Stanley, Citigroup, JPMorgan, and Goldman Sachs. His call for a meltup is based on recent earnings, but some firms may boost their predictions as more earnings roll in. Yardeni’s mantra since 2020 has been that the economy will remain resilient, and so will earnings.
The numbers tell a story of optimism, but also of risk, with the possibility of renewed fighting in the Middle East and stagflation forcing central banks to hike rates.
Yardeni’s target for the S&P 500 by the end of 2029 is 10,000, and he says it might arrive ahead of schedule.
His confidence in the face of uncertainty is a signal that the market is due for a correction.
Author: Evan Null
