Ed Yardeni, president of Yardeni Research, is bullish on U.S. equities despite near-term volatility. He projects the S&P 500 will reach 7,900 by year-end 2026 and 8,400 by mid-2027—a 10 percent gain from current levels around 7,624. Any selloffs, he argues, should be treated as buying opportunities.
Yardeni's targets rest on an earnings forecast of $425 per share for the S&P 500 in 2027. He cites strong corporate earnings and solid economic fundamentals as the foundation for sustained upside.
Geopolitical escalation, potential Federal Reserve rate hikes, midterm election uncertainty, and AI sector overvaluation risks could trigger pullbacks. But Yardeni views these as temporary headwinds, not reasons to abandon equities. Investors should use weakness as entry points if conviction in 2027 earnings holds.
