Ed Yardeni just set the highest S&P 500 target on Wall Street — but warns a meltdown may soon follow

Financial firms specified arsenic Oppenheimer (1), Citigroup (2) and Goldman Sachs (3) person been raising their S&P 500 worth predictions for 2026. Now 1 firm's optimism has topped them all. Ed Yardeni, president of Yardeni Research, announced his 2026 S&P 500 forecast connected Sunday: 8,250. This is up from his erstwhile prediction of 7,700 (4).

Yardeni's latest people was an 11.5% summation from Friday's close, with a year-to-date incline of 8% (5).

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"Our cardinal presumption is that the system volition stay resilient, and truthful volition earnings," Yardeni said successful a enactment (6). "That's been our mantra since we archetypal started penning astir the Roaring 2020s during the summertime of 2020."

Yardeni believes we're successful the Roaring 2020s — but what does that mean?

Since the opening of the decade, Yardeni has been adamant that the United States is experiencing a 2nd "Roaring Twenties" (7).

The 1920s earned the moniker "Roaring 20s" successful the U.S. for respective reasons. A large origin was the country's economical prosperity, with crises marking the opening and extremity of the decade. Heading into 1920, America was recovering from respective ample issues, including World War I (8) and the influenza epidemic (9). However, the state inactive financially thrived for astir of the decade, earlier the 1929 banal marketplace clang that led to the Great Depression (10).

The 2020s besides began with a crisis: the COVID-19 pandemic successful aboriginal 2020. The U.S. system has rallied successful galore ways since then. Issues regarding the pandemic caused the S&P 500 to plunge by 34% — but it recovered aft lone 8 months and really gained worth by the extremity of 2020 (11).

As successful the 1920s, Yardeni believes America volition financially flourish successful the 2020s. He isn't disquieted astir the interaction of the Iran warfare connected this outlook. The S&P 500 show dropped aft the U.S. and Israel attacked Iran earlier this year, but it had rebounded by mid-April and has continued to turn (12).

"We've ne'er seen statement net expectations emergence truthful rapidly for the existent and coming years arsenic they person successful caller months," Yardeni wrote. "The effect has been an earnings-led meltup successful the banal market" (13).