Wall Street Bull Adney: U.S. Stocks' "Roaring Twenties" Still Have 80% Chance of Continuing, Gold Worth Allocating

BlockBeats News, August 26th - Ed Yardeni, President of Yardeni Research and a well-known Wall Street bull, stated that as long as the U.S. economy avoids a recession, the "Roaring Twenties" stock market rally is likely to continue with about an 80% probability. He has raised his year-end target for the S&P 500 three times this year, with the latest target set at 8400 points.

Yardeni believes that the current stock market rally is more driven by strong earnings momentum rather than the "FOMO" valuation expansion seen during the dot-com bubble era. However, he warned that geopolitical events causing a surge in oil prices could reignite inflation, leading to a restart of interest rate hikes by central banks. Additionally, the ongoing increase in the U.S. fiscal deficit and Treasury yields poses significant risks.

Regarding AI investments, he advised against blindly chasing individual tech stocks and instead favored industries such as finance, healthcare, industrial, and energy that benefit from AI applications. Furthermore, Yardeni suggested that amid global central banks increasing their gold holdings and reducing U.S. dollar reserves, having a certain allocation of gold in investment portfolios is a wise move.