Yardeni also predicts a boom in productivity as more companies adopt artificial intelligence, with productivity gains potentially rising from 1.8% to 3.5%-4.5% by the end of the decade. Despite some sectors like commercial real estate possibly entering a recession, Yardeni remains optimistic about the overall economic recovery and the potential for a "roaring 20s" in the stock market.
Key takeaways:
- Market veteran Ed Yardeni predicts the S&P 500 could rise to 6,000 by 2025, implying a 26% gain, as the US economy strengthens.
- Yardeni believes the next two years will see 'rolling recoveries' in the economy, with signs of this already visible in the housing market.
- He also anticipates a boom in productivity as more companies implement artificial intelligence, with productivity gains potentially increasing to 3.5%-4.5% by the end of the decade.
- Despite some sectors, like commercial real estate, likely entering a recession next year, Yardeni maintains an overall positive outlook for the economy and the stock market.