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Ed Yardeni predicts the S&P 500 could reach 8,000 by 2030.
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Yardeni’s prediction is based on a simple analysis of historical growth rates.
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His bullish projection is supported by a “Roaring 2020s” scenario in which productivity grows.
There’s a simple reason one of the most bullish Wall Street strategists expects the stock market to continue rising in the years ahead: compound interest.
In a note on Thursday, Yardeni Research founder Ed Yardeni published a long-term chart of the S&P 500 that includes the potential future trajectory of the index based on compounded annual growth rates.
At a compounded annual growth rate of between 6% and 7%, the S&P 500 is on track to hit 8,000 by 2030, representing potential upside of about 40% from current levels.
Yardeni’s simple math-based projection isn’t outlandish when one considers that the…
