Stocks bull Yardeni cuts SP 500 view to 7,900 on downturn risks

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorStocks bull Yardeni cuts SP 500 view to 7,900 on downturn risksOther strategists, however, have boosted outlooks for the stock index on economic growth through the end of the decadeAuthor of the article:Ed Yardeni is the second strategist this week to lower his view for the S&P 500 as analysts grow increasingly skeptical heading into the end of a midterm election year. Photo by Christopher Goodney/Bloomberg via Getty ImagesEd Yardeni, one of the biggest stock bulls on Wall Street, is slashing his year-end forecast for the S&P 500 index a month after raising it, citing increasing risks of a downturn in the next three to six months.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe president and chief investment strategist of Yardeni Research Inc. cut his target to 7,900 from 8,400, which was the highest estimate on the Street as of last month. The new target implies a 4.1 per cent increase from where the equity gauge closed on Tuesday. It also falls in the middle of pack, based on a Bloomberg survey of more than 20 strategists.“Given the recent backup in bond yields, we are lowering our estimate for the forward P/E of the S&P 500 at year-end from 19.8 to 18.6, which lowers our year-end target from 8,400 to 7,900,” Yardeni wrote in a note to clients.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againThe veteran strategist upgraded his S&P 500 target to 8,400 from 8,250 in August, a level that topped his own Street-high target for the gauge amid “fabulous” earnings momentum.Yardeni is the second strategist this week to lower his view for the S&P 500 as analysts grow increasingly skeptical heading into the end of a midterm election year. Wells Fargo & Co.’s Ohsung Kwon cut his target to 7,700 from 7,950, saying a decade-long earnings growth cycle will eventually slow down while technology-sector risks are mounting.Others, however, have boosted their outlooks this week, including Bank of America Corp.’s Savita Subramanian and Tallbacken Capital Advisors’ Michael Purves, whose 8,500 target is now a Street high.Yardeni still expects that “the economy will grow without a recession through the end of the decade.” The analyst said his target for the end of this decade remains at 10,000.He added that the previous year-end forecast of 8,400 has now become a mid-2027 target for the S&P 500. His 2027 earnings-per-share target of US$425 is unchanged.Yardeni wrote in a previous note that “for stocks, the stagflationary mix of higher inflation and slower growth would be particularly troublesome.”We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.