'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

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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