Tags: Yardeni | S&P | 500 | 2 | 014

Economist Ed Yardeni: S&P 500 Will Hit 2,014 This Year

By    |   Friday, 21 Mar 2014 08:16 AM

The Standard & Poor's 500 Index stands within 1 percent of its record peak, and it's poised to keep rising, says, Edward Yardeni, president of Yardeni Research.

"I've got this gimmicky target of 2,014 by the end of 2014," he told CNBC. "It catches the imagination. The main point is I think we can be up 8 to 10 percent this year."

The S&P 500 closed at 1,870 Thursday afternoon. Yardeni's target represents an 8 percent climb from that level.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

While some financial commentators have said that rising interest rates will spoil the stock party, "it's not a foregone conclusion that rates are going up," Yardeni said. "I think inflation will remain extremely low."

He believes some investors misinterpreted Fed Chair Janet Yellen's remarks about raising interest rates Wednesday. She said the Fed may lift rates about six months after it ends its bond purchases.

"I think she is still committed to waiting until inflation comes back to 2 percent," Yardeni said.

"And I think the new target is 5.5 percent on the unemployment rate. They just didn't want to be that explicit about it. I think that could take a little while." The jobless rate stood at 6.7 percent in February.

Corporate share buybacks also will boost stocks, Yardeni said.

Others share his bullishness. "The market has digested and even discounted a bit what Yellen said, and put things into perspective," Stephen Carl, head equity trader at Williams Capital Group, told Bloomberg.

"We have to see how the economy continues to move along. People are back focusing on signs of economic growth."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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The Standard & Poor's 500 Index stands within 1 percent of its record peak, and it's poised to keep rising, says, Edward Yardeni, president of Yardeni Research.
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2014-16-21
Friday, 21 Mar 2014 08:16 AM
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