Dow on track to reach 60,000 by 2030, says Ed Yardeni (2024)

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Dow on track to reach 60,000 by 2030, says Ed Yardeni? ›

Yardeni Research's chief investment strategist, Ed Yardeni, told clients in a note that the Dow Jones Industrial Average is on track for a 50% rise to 60,000 by 2030, and the S&P 500 could climb to 8,000, thanks to earnings.

Traders on the floor of the New York Stock Exchange in New York City on May 16, 2024, when the Dow hit 40,000 points for the first time ever. The Dow Jones Industrial Average surpassed 40,000 points on Thursday for the first time ever, signaling a strong endorsem*nt of the health of the U.S. economy.

In general, the benefits of investing in the Dow Jones Industrial Average outweigh the disadvantages. Consistent long-term returns: the Dow Jones has a long history of strong performance, with an average annual return of around 10% since its inception in 1896.

Dow Jones price prediction for the next 5 years: In 2030, projections and trends show that the Dow would reach 50,000, according to a mathematical forecasted model successfully applied in the past.

The Dow posted its all-time high during intraday trading on May 16, 2024, reaching a peak of 40,051.05 points. The highest close occurred the day before when the index closed at 39,908.00 points. The peak was led in part by optimism that the Federal Reserve could cut interest rates later this year.

On April 12, 1994, the Dow Jones Industrial Average closed at 3,681.69. Over the trailing-30-year period, this widely followed index has increased at an annualized rate of 8.09%! If this superior rate of gains were to persist, the Dow could reach 50,000 before the calendar changes to 2028.

Here's Where Pros See Stocks Headed Next. It took seven years for the Dow Jones Industrial Average to move from 20,000 to 40,000, and it had to bounce back from an April slump to cross the finish line. The 30-component blue-chip index now joins the Nasdaq and the S&P 500 in making recent highs.

James Demmert, chief investment officer at Main Street Research, said he believes the S&P 500 could trade at 15,000 or higher within seven to 10 years, while the Dow could rise to 100,000, and the tech-heavy Nasdaq Composite could reach 50,000.

CoinPriceForecast. CoinPriceForecast analysts expect the Dow Jones to reach $41 693 by mid-2025. By the end of the year, the price will rise to $42 826.

By November 2020, the Dow had closed above 30,000 for the first time. The momentum from the Covid lows carried through to 2021, with the Dow breaking above 35,000.

How much will the stock market grow in the next 10 years? ›

Returns in the S&P 500 over the coming decade are more likely to be in the 3%-6% range, as multiples and margins are unlikely to expand, leaving sales growth, buybacks, and dividends as the main drivers of appreciation.

Heading into 2024, investors are optimistic the same macroeconomic tailwinds that fueled the stock market's 2023 rally will propel the S&P 500 to new all-time highs in 2024.

Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.

The Nifty 50 ended the session with a 0.10 per cent gain at 25,408 points, nearing an all-time high of 25,445 points during the session, with just 4 points away. The S&P BSE Sensex ended with a 0.13 per cent gain at 83,098 points, also hitting a new peak.

As a whole, analysts are optimistic about the outlook for stock prices in 2024. The consensus analyst price target for the S&P 500 is 5,090, suggesting roughly 8.5% upside from current levels.

Speaking broadly, the Dow hitting a milestone like 40,000 should mean your own well-diversified portfolio is thriving — probably not at the exact rate that the 30 stocks in the index are (unless you own a fund that tracks them), but just in aggregate.

It Doesn't Matter as Much as You Might Think. The stock market has soared in recent years, with the S&P 500 up by more than 55% since its lowest point in late 2022. But stock prices can't keep surging forever, and there will be a pullback sooner or later.