'This Is A Long-Term Bull Market': Expert Ed Yardeni Stands By His 5,400 Year-End S&P 500 Target, Predicts 26% Upside By 2026 (2024)

'This Is A Long-Term Bull Market': Expert Ed Yardeni Stands By His 5,400 Year-End S&P 500 Target, Predicts 26% Upside By 2026 (1)

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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'This Is A Long-Term Bull Market': Expert Ed Yardeni Stands By His 5,400 Year-End S&P 500 Target, Predicts 26% Upside By 2026 (2024)

FAQs

What is the stock market outlook for 2026? ›

Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.

What is the target for the S&P 500 in 2024? ›

The revised estimates from strategists now put their average year-end target for the S&P 500 at 5,289, implying a decline of less than 1% from Monday's levels, according to MarketWatch calculations. Heading into 2024, the average target was around 5,117 (see table below).

What is a long term bull market? ›

Prices of securities rise and fall continuously during trading. But a bull market occurs over extended periods of time during which a large portion of security prices rise overall. Bull markets tend to last for numerous months or even years.

What is the stock market outlook for 2024? ›

S&P 500 earnings to increase 9.3% compared to a year ago. S&P 500 earnings growth to accelerate in the second half of the year. Full-year S&P 500 earnings growth of 11.4% in 2024. Full-year S&P 500 revenue growth of 5% in 2024.

Should I pull my money out of the stock market? ›

Unlike the rapidly dwindling balance in your brokerage account, cash will still be in your pocket or in your bank account in the morning. However, while moving to cash might feel good mentally and help you avoid short-term stock market volatility, it is unlikely to be a wise move over the long term.

Which stock will rise in next 10 years? ›

Best long-term stocks
  • Larsen & Toubro. ...
  • Hindustan Unilever Limited. ...
  • Godrej Consumer Products. ...
  • ITC. ...
  • Reliance Industries. ...
  • Varun Beverages Ltd. ...
  • Tube Investments of India Ltd. ...
  • Alembic Pharma.

Is a bull market good or bad for investors? ›

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. The longest bull market in history started in 2009 and extended through 2020.

Should you sell in a bull market? ›

Investing in bull and bear markets

Having a higher allocation of stocks is optimal in a bull market, where there's more potential for higher returns. One way to capitalize on the rising prices of a bull market is to buy stocks early on and sell them before they reach their peak.

Is 2024 a bull market? ›

Here are some reasons why 2024 is shaping up to be a historic bull market. The 'sell in May and go away' adage says to sell in May and go away thru October. A full 6 months. And then buy back into the market in November and stay in thru April.

Which stock will boom in 2024? ›

5 best stocks to buy
S.No.Top 5 StocksIndustry/Sector
1.Shriram FinanceNBFC
2.SBI Life InsuranceInsurance
3.Axis BankBanking
4.Mahindra & MahindraAuto
1 more row
6 days ago

What stocks is Congress buying in 2024? ›

Join Our Market Watch Newsletter!
StockPoliticianFiled
DHR Danaher CorpWhitehouse, Sheldon D SenateMay 20, 2024
RTX Rtx Corporation Common StockWhitehouse, Sheldon D SenateMay 20, 2024
NVS Novartis Ag AdrWhitehouse, Sheldon D SenateMay 20, 2024
NVDA Nvidia Corporation - Common StockTuberville, Tommy R SenateMay 15, 2024
47 more rows

What is the expected return of the S&P 500 in the next 10 years? ›

Optimistic: 6%-7% per year.

If you assume margins and P/E multiples will remain at their current high level, and expect sales and buybacks to grow at their historical rates, then you can anticipate making about 6% in returns per year over the next decade.

What is the 10 year outlook for the stock market? ›

BlackRock. Highlights: 5.2% 10-year expected nominal return for U.S. large-cap equities; 9.9% for European equities; 9.1% for emerging-markets equities; 5.0% for U.S. aggregate bonds (as of September 2023). All return assumptions are nominal (non-inflation-adjusted).

Will stocks go up in 2025? ›

Analysts expect S&P 500 profits to jump 8% in 2024 and 14% in 2025 after subdued growth last year, data compiled by BI show. The earnings forecast could be even higher next year in the event of zero rate cuts in 2024, said Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management.

What is the path stock price forecast for 2030? ›

What is the UiPath Inc. stock prediction for 2030? According to our UiPath Inc. stock prediction for 2030, PATH stock will be priced at $ 8.60 in 2030. This forecast is based on the stock's average growth over the past 10 years.

How much will stocks grow in 10 years? ›

If you assume margins and P/E multiples will remain at their current high level, and expect sales and buybacks to grow at their historical rates, then you can anticipate making about 6% in returns per year over the next decade.

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