Wall Street bull Yardeni: The "Roaring 2020s" trend for US stocks has an 80% chance of continuing, and gold merits allocation.
1 hours ago
Ed Yardeni, president of Yardeni Research and a well-known Wall Street bull, stated that as long as the U.S. economy avoids a recession, there is roughly an 80% chance the "Roaring 2020s" stock market rally will persist. He has raised his year-end target for the S&P 500 three times this year, with the latest projection standing at 8,400 points. Yardeni attributes the current stock market advance more to strong earnings momentum rather than FOMO-driven valuation expansion seen during the dot-com bubble. However, he warned that geopolitics-fueled oil price spikes could reignite inflation and force central banks to resume interest rate hikes. Meanwhile, the U.S. fiscal deficit and rising Treasury yields are also key risks. On AI investments, he advised against blindly chasing individual tech stocks, instead favoring sectors like finance, healthcare, industrials, and energy that stand to benefit from AI applications. Additionally, Yardeni noted that against the backdrop of global central banks increasing gold holdings and reducing U.S. dollar reserves, allocating a certain proportion of gold to investment portfolios is a prudent move.
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