FNArena’s Weekly Insights – November 18 2024
By Rudi Filapek-Vandyck, Editor
Ed Yardeni believes the S&P500 will reach 10,000 by 2030.
It seems like a bold prediction to make, typical, maybe, of the euphoric sentiment that surrounds share markets when indices are trading near all-time record highs.
More value-conscious investors have kept their eyes firmly focused on the elevated multiples and the narrow base from which equity indices have set new records this year, instead urging investors to remain vigilant and cautious.
Clearly, Yardeni is not that worried, instead predicting the absence of economic recession and the strong acceleration in growth ahead will take care of today’s bloated-looking valuations.
That prospective acceleration in growth, by the way, has less to do with the new US President, but more so with the latest technological break-through that is Artificial Intelligence (AI), which, through a variety of formats, promises to deliver efficiencies to industries and companies that are able to develop, integrate and employ this new technology to their own benefit.
Less regulation and tax cuts from Trump & Co are simply an added bonus, while drawbacks from tariffs and higher bond yields amp up general uncertainty.
Different, but the same?
Adding another 4000 points on top of today’s richly-valued US share market might prove less demanding than one might assume at first reflex.
Consider the long term average return of the S&P500 is around 10%, including dividends.
