Ed Yardeni, a renowned market analyst, predicts a long-term bull market for the S&P 500, with a potential peak price of up to 10,000 points by the end of the decade. This optimistic assessment is based on various key factors that support a strong performance of the US stock market.
Current Bull Market in the S&P 500
Yardeni considers the bull market that has been ongoing since October 2022 to be still intact. For the end of 2025, he has set a short-term price target of around 6,500 points. His analysis takes into account geopolitical developments such as the recent actions of the USA against Iran, which have increased America’s military deterrence capacity. These measures support Yardeni’s “Roaring 20’s” scenario.
Positive Corporate Earnings and Analyst Forecasts
Another factor underpinning Yardeni’s optimistic forecast is the positive development of earnings estimates for companies in the S&P 500. Analysts have raised their expectations three times in a row, despite earlier concerns about negative impacts from Trump’s tariffs. These positive earnings forecasts suggest that the market is well-positioned to stay on track for the projected price.
For investors interested in long-term trends, this forecast signifies strong confidence in the growth potential of the US economy, even in the face of short-term political uncertainties.