The stock market took a breather on Tuesday, paring some of its gains after a six-day rally pushed the S&P 500 above 4,500 for the first time since July. But Ed Yardeni, founder of Yardeni Research, believes there’s more upside ahead for investors. “A move up to match the record high is conceivable either by year-end or sometime early next year,” he wrote in a Monday note to clients.
The veteran market watcher has been bullish all year, arguing that the Federal Reserve’s interest rate hikes will tame inflation without sparking a job-killing recession—an outcome known as a “soft landing.” He even placed a 4,600 year-end price target on the S&P 500 at the start of the year when many investment banks were nervous about the potential impact of rising rates on corporate earnings (Wall Street’s average price target was just 4,050).
