Yardeni: We're Still In a Bull Market, S&P to Top 2,000
Worried that the end is near in the stock market? Put your fear aside says market veteran Ed Yardeni, president of Yardeni Research. The stock correction that crested last Friday merely represents more fuel for the five-year-old bull market.
"I characterized it as an internal correction," he told CNBC. "Certainly if you look at the broad averages, the S&P 500 certainly didn't have much of a correction."
The Nasdaq dropped 8.5 percent from its 13-year high March 6 through last Friday. And the S&P 500 slid 4.3 percent from its record high April 4 through last Friday. Yardeni sees good coming out of that.
"I do think this internal correction actually increases the longevity of the secular bull market," he contends.
"The more we can internally correct this market, the more that high-priced stuff can become a little cheaper and the money doesn't leave the market but actually goes to some of the areas that have been left behind" the better, he argues.
"This is a very broad bull market, it's a very democratic market," Yardeni notes. "It doesn't leave too much behind."
His year-end price target for the S&P 500 is above 2,000. "This market's not cheap. I've been bullish for five years, but these things don't last forever," he said. "At this point, I think if we can just get stocks to increase at the same pace as earnings — and I think earnings will grow — I think we'll have a pretty decent year of maybe 10 percent increase for the S&P 500."
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