Strategist: S&P 500 Could Rise to 10,000 Points; U.S. Stock Rally Not Fueled by Speculative Sentiment

Odaily Planet Daily News: Amid debates over whether U.S. stock valuations have entered a bubble zone, Ed Yardeni, President and Chief Investment Strategist at Yardeni Research, offered a contrasting assessment. 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 U.S. economy does not fall into a recession in the coming years, the current forward P/E ratio of the S&P 500, around 20 to 22 times, can be reasonably justified.

Despite his overall optimistic outlook, Yardeni acknowledged that the rapid rise of some semiconductor stocks has given the market characteristics of a "melt-up." However, he remains confident in the long-term trend, suggesting that in what he calls the "Roaring 20s" scenario, the S&P 500 could rise to 10,000 points by the end of this decade, representing an upside of approximately 33% from current levels. (Jin Shi)