S&P 500 forecast: Ed Yardeni sees another 20% upside

July 18, 2023 09:56 AM AEST | By Invezz

S&P 500 forecast: Ed Yardeni sees another 20% upside — Image source: Invezz

Yardeni explains his bullish view on S&P 500

Ed Yardeni is convinced that the equities market could hit a new high of 5,400 by the end of next year. That suggests up another 20% from here.

Today on CNBC’s “Squawk Box”, the President of Yardeni Research said the U.S. economy is already past the slow down.

I’ve been thinking for quite some time that we’re in a recession, but I argued that it’s a rolling recession, not an economy-wide recession. Now I think we’re in a rolling recovery.

He did agree, though, that the possibility of a near-term correction following an aggressive year-to-date rally remains on the table.

Inflation is coming down fast

The former Chief Investment Strategist of Deutsche Bank is constructive on S&P 500 also because the central bank seems to be winning its battle against inflation.

Last week, the U.S. Bureau of Labour Statistics said consumer prices eased further to 3.0% in June (find out more). Cheering the Federal Reserve on effectively capturing price pressures, Yardeni said:

Market was overjoyed with a disinflationary soft-landing scenario … Wall Street likes to be contrary and say Fed is not on right track, but I think they can actually say mission accomplished.

The Federal Open Market Committee is scheduled to announce its next policy decision on July 26^th. Earlier this month, Fundstrat’s Tom Lee raised his year-end price target on the equities market as well.

The post S&P 500 forecast: Ed Yardeni sees another 20% upside appeared first on Invezz.

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