Ed Yardeni, president of Yardeni Research and a longtime Wall Street bull, said the "Roaring 2020s" rally in U.S. equities still has about an 80% chance of continuing as long as the U.S. economy avoids a recession. He has raised his year-end target for the S&P 500 three times this year, with the latest forecast at 8,400.
Yardeni said the current advance in stocks is being driven more by strong earnings momentum than by the kind of FOMO-style multiple expansion seen during the dot-com bubble. At the same time, he warned that a geopolitical shock that sends oil prices sharply higher could lift inflation again and force central banks to resume rate hikes. He also pointed to the U.S. fiscal deficit and persistently rising Treasury yields as key risks.
On AI investing, Yardeni said investors should avoid blindly chasing a single technology stock. Instead, he favors sectors that stand to benefit from AI adoption, including financials, healthcare, industrials, and energy. He also argued that holding a portion of gold in a portfolio is a prudent move, citing global central bank buying and a reduction in dollar reserves.
According to BlockBeats, on Aug. 26, Ed Yardeni, president of Yardeni Research and a well-known Wall Street bull, said the "Roaring 2020s" run in U.S. stocks still has about an 80% chance of continuing, as long as the U.S. economy avoids a recession.
Yardeni has raised his year-end S&P 500 target three times this year, with his latest projection set at 8,400. He said the current rise in U.S. equities is being driven more by strong earnings momentum than by the kind of FOMO-style valuation expansion seen during the dot-com bubble.
He also flagged several risks. In his view, geopolitical tensions could send oil prices sharply higher, push inflation back up, and force central banks to restart rate hikes. He added that the U.S. fiscal deficit and persistently rising Treasury yields remain major risk factors.
On AI investing, Yardeni said investors should avoid blindly chasing a single technology stock. He is more constructive on sectors that could benefit from AI applications, including financials, healthcare, industrials, and energy.
Yardeni also said it makes sense to hold a certain allocation to gold in a portfolio, citing a backdrop in which global central banks are increasing gold holdings and reducing dollar reserves.
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