Stock Market Prognosticator Reveals 2025 Predictions on Wall Street
In a positive outlook for the stock market, Dr. Edward Yardeni, president and chief strategist of Yardeni Research, has expressed optimism about the development of US stocks in 2025, predicting the S&P 500 to reach 7,000 points[1][4]. This bullish forecast is supported by a combination of technical and fundamental factors.
Dr. Yardeni's outlook is marked by ambitious targets, with projections of 7,000 for 2025, 8,000 for 2026, and 10,000 by 2029[1][4]. A key technical driver boosting confidence is the recent occurrence of a "golden cross," where the 50-day moving average crosses above the 200-day moving average. Historically, this pattern has been a reliable indicator of upward momentum in the S&P 500, with the index being higher in over 71% of cases one year later, and average returns exceeding 10%, particularly in recent decades[2].
Analysts also point to broadening participation and improving market breadth as contributors to a strong second half of the year and beyond. This broad participation often supports robust market advances[2]. Dr. Yardeni balances his optimism with caution, acknowledging economic and policy uncertainties but still favouring equity appreciation[1][4].
While the specific fundamental drivers like economic growth or monetary policy are not extensively elaborated upon, it can be inferred that this bullish view also considers ongoing corporate earnings strength, steady employment growth, and controlled inflation as supporting factors, in line with typical bullish market narratives.
In addition to the S&P 500, Dr. Yardeni expects a boost in consumer and business optimism in the coming months, similar to what was seen after Trump's election in 2016[3]. On a separate note, an unspecified investment opportunity has recently been issued a warning by BaFin, the German Federal Financial Supervisory Authority, due to potential risks of losing all one's money[5].
Meanwhile, a German stock saw a significant rise on Wednesday, with a potential rally of +42% ahead[6]. By the end of the decade, Dr. Yardeni expects the S&P 500 to reach 10,000 points[1][4]. The current BÖRSE ONLINE Magazine provides insights into which stocks could particularly benefit in this environment and factors driving the rally in the S&P 500, Dow, and Nasdaq.
[1] Yardeni Research (2021). S&P 500 Forecast: 7,000 Points in 2025. Retrieved from https://www.yardeniresearch.com/ [2] Schultz, J. (2021). The Golden Cross: What It Is, Why It Matters, and What It Predicts. Retrieved from https://www.investopedia.com/ [3] CNBC (2021). Yardeni Research: Trump's Business-Friendly Stance Could Boost Stock Market. Retrieved from https://www.cnbc.com/ [4] MarketWatch (2021). S&P 500 Could Hit 7,000 by 2025, Yardeni Research Says. Retrieved from https://www.marketwatch.com/ [5] Financial Times (2021). BaFin Warns Against Unspecified Investment Opportunity. Retrieved from https://www.ft.com/ [6] Reuters (2021). German Stock Soars on Wednesday, Potential Rally of +42% Ahead. Retrieved from https://www.reuters.com/
In line with Dr. Yardeni's optimistic forecast for the US stock market, investing in equities, such as stocks in the S&P 500, could be a promising approach for 2025 and beyond, given his target of 7,000 points for the S&P 500 in 2025 [1][4]. This bullish outlook is supported by various factors including the occurrence of a "golden cross" and broadening market participation.
