Why one market vet sees stocks gaining another 26% through 2026 in a 'long-term bull market' (2024)

News stocks

  • Market veteran Ed Yardeni still sees plenty of upside left for the stock market.
  • Yardeni told CNBC on Wednesday that the S&P 500 could rise 26% through 2026 to 6,500.
  • "I think this is a long-term bull market," Yardeni said.

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Wall Street's most bullish forecaster isn't backing down from his year-end 5,400 price target for the S&P 500, and he believes there could be plenty of upside beyond that level.

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.

The S&P 500 is so far up 8% year-to-date at about 5,150, which is just 5% below Yardeni's year-end stock market projection.

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Yardeni said he was encouraged by the improving breadth of the market, which refers to the number of stocks that are participating in the recent uptrend. Yardeni pointed to the equal-weighted S&P 500 index recently hitting record highs as an example of that, and said that the momentum trade could stall out as more stocks outside of tech rise.

"I think that a broadening of the market is probably what's in store, and I think we're also likely to see less momentum," Yardeni said, adding that elevated bullish sentiment among investors suggests "there may not be enough bears around to convert into bulls to keep the momentum going."

Calling the broadening out of the market "a healthy thing," Yardeni said that bull markets, like this one, could last a long time.

"I think we're way past the point where I have to prove this is a bull market. I think we all know this is a bull market. Bull markets can last a long time until we get hit by another recession, and that requires the Fed to be raising interest rates," Yardeni said.

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But with the Fed more likely to be cutting interest rate than hiking interest rates, Yardeni sees no economic recession materializing in the next one to two years.

"I mean the Fed has already raised interest rates. I think inflation is coming down and I think it's going to stay down," Yardeni said.

"So as long as we don't get a credit crunch and have a recession, I think the bull market continues," Yardeni said.

Why one market vet sees stocks gaining another 26% through 2026 in a 'long-term bull market' (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 happens to stocks in a bull market? ›

A bull market is a financial market in which prices for financial securities rise continuously. The commonly accepted threshold for the start of a bull market is a rise in stock prices of 20%. Traders employ a variety of strategies, such as increased buy and hold and retracement, to profit from bull markets.

What does a bull market indicate in terms of stock markets and their outlook? ›

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.

What is a bull market quizlet? ›

Bull Market. A period of increased stock trading and rising stock prices.

What stock has the best 5 year forecast? ›

The Best Growth Stocks of June 2024
Company (ticker)5-Year Avg. Yearly EPS Forecast
Meta Platforms, Inc. (META)30.0%
Full Truck Alliance Co. Ltd (YMM)29.0%
T-Mobile US, Inc. (TMUS)25.8%
Willscot Mobile Mini Holdings Corp. (WSC)18.6%
6 more rows
Jun 3, 2024

What is the S&P 500 prediction for 2024? ›

Evercore ISI highlighted Gen AI's rising productivity across sectors as a key factor in raising their S&P 500 target. They projected EPS to reach $238 in 2024 and $251 in 2025, with 8% and 5% growth, respectively, justifying a high PE ratio of 25.

Will 2024 be a bull or bear market? ›

The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official. The onset of a new bull market has historically been a very reliable stock market indicator.

Is it better to buy in a bull or bear market? ›

Bull markets tend to last longer than bear markets with an average duration of 6.6 years. The average duration of a bear market is 1.3 years. The average cumulative gain over the course of a bull market is 339%. The average cumulative loss over the course of a bear market is 38%.

Should you sell during 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.

How long do bull markets usually last? ›

3. How long the average bull market lasts. As much as investors would like the answer to this question to be "forever," bull markets tend to run for just under four years. The average bull market duration, since 1932, is 3.8 years, according to market research firm InvesTech Research.

What are the signs of the end of a bull market? ›

Signs that a bull run is coming to an end
  • Overbought conditions. ...
  • Decreasing trading volume. ...
  • Bearish divergence. ...
  • Negative news or events. ...
  • Excessive speculation. ...
  • Peak euphoria. ...
  • Technical resistance levels. ...
  • Rising volatility.
Mar 15, 2024

How to know if a market is bullish or bearish? ›

During a bullish market, when the MACD line crosses above the signal line, it is a bullish signal, indicating that the uptrend is gaining momentum. This can be an entry point for long positions. On the other hand, when the MACD line crosses below the signal line, it is a bearish signal.

What are the best growth stocks right now? ›

Best-performing growth stocks
CompanyPerformance (Year)
Universal Technical Institute Inc (UTI)146.63%
Robinhood Markets Inc (HOOD)130.82%
Blue Bird Corp (BLBD)120.44%
Ceco Environmental Corp. (CECO)115.24%
17 more rows
Jun 3, 2024

Who is called bull in stock market? ›

What is bull in stock market? A bull can be defined as an investor expecting prices to rise. Based on this hypothesis, he/she buys a security with an expectancy to resell it later for a gain.

Which of the following best describes a bull market? ›

A bull market is a period of time characterized by steadily increasing prices and optimism among investors.

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).

Is the stock market expected to go up in 2024? ›

The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from an 18.11% setback in 2022. Heading into 2024, investors are optimistic the same macroeconomic tailwinds that fueled the stock market's 2023 rally will propel the S&P 500 to new all-time highs in 2024.

What is Zoom stock price forecast for 2026? ›

CoinCodex expects Zoom stock to skyrocket in 2026. According to the forecast, the price will start at nearly $96 and close the year at $146.

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.

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