Unbelievable Market Predictions: DJIA to Hit 60,000 and S&P 500 to Surpass 8,000 by 2030
Are you ready for the roaring 2020s in the stock market? According to Yardeni Research, the Dow Jones Industrial Average (DJIA) and S&P 500 are set for massive growth in the coming decade.
Yardeni analysts are forecasting that the DJIA could skyrocket to 60,000, while the S&P 500 could soar past 8,000 by 2030. The main driver behind the S&P 500's surge is its earnings per share (EPS), which has been steadily increasing by 6-7% annually since the 1950s.
In their optimistic scenario, Yardeni predicts that the S&P 500 EPS could double to $400 by the end of the decade, with a price-to-earnings (P/E) ratio of 20, propelling the index over the 8,000 mark.
Despite current global tensions, Yardeni remains bullish on the market. They point out that historically, geopolitical crises have often presented buying opportunities, with the stock market typically rebounding after dips during recessions.
Yardeni advises investors to not let political biases sway their investment choices, noting that the market tends to thrive regardless of who is in office. They emphasize that the S&P 500 has seen an average annual increase of 7.3% since 1928, with dividends boosting returns further.
The firm also highlights that bull markets tend to end before recessions, but they typically resume when an economic recovery appears imminent. They caution that the worst months historically for the market are February, May, and September.
In conclusion, Yardeni Research's bold predictions suggest that the stock market is primed for considerable growth over the next decade. Investors should consider these forecasts and stay informed to make the most of potential opportunities in the market.