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Yardeni Research President Ed Yardeni, who called the March 30 market bottom, expects the bull market to persist into next year.
Earnings are "phenomenal" and companies will report double-digit year-over-year growth throughout 2026, Yardeni said Tuesday on CNBC, which noted the S&P 500 has gained about 14% since that low. He expects the S&P 500 to reach 7,700 by year-end.
"Of course the geopolitical issue is in the background but I think it's a reasonable outlook, and I think we keep going into next year," the economist and analyst said on "Power Lunch."
"A lot of it has been tech but it's also been energy but then it's actually surely broadly based," Yardeni said. "We look at the breadth of positive earnings revisions and this keeps going higher, and it's going higher at a faster pace. That's what really got my attention."
While analysts previously expected 12% average earnings growth for the S&P 500 this year, it now appears companies will report 18% growth for this year's first quarter, followed by 20% or more in the second, third and fourth quarters, he added.
Revenues are very strong even as the global economy is supposed to be weak, and margins "have gone straight up" to record highs, Yardeni explained. That speaks to a "roaring 2020s" productivity boom that he anticipated and now appears to be underway. He also predicts labor market strength despite AI-related layoffs.
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