The Dow is set to surge 50% by 2030 as the ‘roaring 20s’ are alive and well for stocks, market vet says
- With the stock market trading at record highs, the “Roaring 20s” thesis is alive and well.
- That’s according to Ed Yardeni, who expects the Dow and S&P 500 to soar 50% by 2030.
- “That target could be achieved with a forward P/E of 20 and forward earnings at $400 per share,” Yardeni said.
With stocks trading at record highs, the “Roaring 20’s” bull thesis remains intact, according to market veteran Ed Yardeni.
Yardeni said in a recent note that his roaring 20s thesis, which is based on the idea that AI will help unleash a productivity boom in the economy, will help drive the stock market 50% higher by 2030, with the Dow Jones Industrial Average and S&P 500 rising to 60,000 and 8,000, respectively.
Yardeni said his 2030 targets are based on continued earnings growth and a simple 6% compounded annual growth rate, which is slightly lower than the stock market’s historical average annual return of 7% net of inflation.