The S&P 500 will hit 8,000 by the end of the decade as the bull market continues through the 'roaring 20s,' market vet says

• The "Roaring 20s" are back and set take the S&P 500 to new heights, market vet Ed Yardeni says.
• The Yardeni Research president predicted the benchmark index could hit 8,000 by the end of this decade.
• The upwards momentum will be driven by AI and improving corporate earnings, he said.

The bull market in stocks is bound to run on until the end of this decade, according to market veteran Ed Yardeni.

Speaking on the David Lin Report this week, the Yardeni Research president reiterated his bullish forecast on stocks. The S&P 500 is on track to hit 6,000 by the end of 2025, and could rally to 8,000 by the end of the decade, he predicted, implying another 46% upside for the benchmark index.

A confluence of bullish factors will get it there, Yardeni said, noting that, in his view, the "Roaring '20s" are back.

"I'm still bullish. I think it's a bull market … These are all my base case, 60% most likely, Roaring 2020 scenario," he said of his price targets.

Stocks look to be on a good trajectory given the strength of the US economy, Yardeni said. Despite fears that the US would slip into a recession, the economy has continued to expand, with GDP expected to grow another 3% this quarter, according to Atlanta Fed economists.

A strong economic backdrop is also fueling confidence in corporate earnings. 12-month forward earnings expectations on Wall Street are currently at an all-time high, reflecting the bullish mood among forecasters.

Then there is the ever-growing investor excitement about the potential of artificial intelligence, which has carried mega-cap tech stocks steadily higher over the last 18 months.

"There's been a tremendous amount of excitement about artificial intelligence, and the reality is technology companies have reported some pretty fantastic earnings," Yardeni said, pointing to stellar profits at companies like Nvidia and Oracle. "The news just continues to be very exciting about the technology revolution, that's driving, what I think, is the Roaring 2020s," he added.

Stocks still face some risks in the year ahead. The market has a 20% chance of seeing a "melt-up" and an ensuing "meltdown" if stocks rise unsustainably, Yardeni said, echoing other forecasters who have warned of a potential market correction after a long run of stellar performance.