Strategist: US Stock Rally Not Driven by Speculative Sentiment, S&P 500 Could Rise to 10,000 Points

Odaily Planet Daily News Regarding whether the valuation of US stocks has entered a bubble zone, Ed Yardeni, President and Chief Investment Strategist of Yardeni Research, offered a distinctly different assessment. He believes that the current market rally is not driven by speculative sentiment but is based on strong growth in corporate earnings. In an interview on Wednesday, Ed Yardeni stated, "The biggest difference is earnings." He explained that as long as the US economy does not fall into a recession in the coming years, the S&P 500's current forward P/E ratio of about 20 to 22 times can be reasonably justified.

Although his overall assessment leans optimistic, Yardeni also acknowledged that the rapid rise of some semiconductor stocks has given the market certain "melt-up" characteristics. Nevertheless, he remains confident in the long-term trend, believing that under the scenario of the so-called "Roaring 20s," the S&P 500 index could rise to 10,000 points by the end of this decade, representing about 33% upside from current levels. (Jin Shi)