Veteran market strategist Ed Yardeni has predicted that both the S&P 500 and gold are on track to reach the 10,000 level by the end of the decade. Yardeni, known for his optimistic outlook, highlighted the ‘Roaring 2020s’ scenario, noting that both the S&P 500 and gold have already surged to new record highs this year, bolstering his confidence in continued growth. The S&P 500 is a stock market index that represents the performance of 500 of the largest publicly traded companies in the United States. Gold is a precious metal often used as a store of value and hedge against inflation.
Yardeni believes the S&P 500’s ascent to 10,000 will be fuelled by robust earnings growth, contingent on the absence of a recession. This assumption is based on the economy’s resilience observed since the beginning of the decade. The index closed at 6629.07 on Thursday. His analysis suggests a strong correlation between the performance of the stock market and the precious metal, hinting that both could achieve the 10,000 milestone concurrently.
Regarding gold, Yardeni acknowledged the absence of an earnings-equivalent metric, relying instead on extrapolating trends from price charts. Earlier this year, following gold’s surge above $US3000, Yardeni projected it would reach $US4000 by year-end, a target recently achieved. He has now set a new target of $US5000 by the end of 2026. Spot gold was trading at $US4317.44 at 4.16pm in New York.
Yardeni’s outlook underscores a continued bullish sentiment on both equities and precious metals, driven by economic resilience and sustained growth momentum. The one-to-one long-term relationship between the gold price and the S&P 500 suggests that both could be at 10,000 by the end of the decade.
