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

Odaily Planet Daily News: Regarding whether US stock valuations have entered a bubble zone, Ed Yardeni, President and Chief Investment Strategist at Yardeni Research, offered a contrasting view. He believes the current market rally is not driven by speculative sentiment but is built on the foundation of robust corporate earnings growth. "The biggest difference lies in earnings," Yardeni said in an interview on Wednesday. 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.

Despite his generally optimistic outlook, Yardeni 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, suggesting that under the "Roaring 2020s" scenario, the S&P 500 could reach 10,000 points by the end of this decade, representing an upside of about 33% from current levels. (Jinshi)