We've been bullish on the stock market since October 2022. We remain bullish, targeting 7000 on the S&P 500 by the end of next year. That puts us near the head of the pack (chart).
Here's more on earnings and valuation:
(1) Our forecast for revenues, earnings & margins. We are the head of the pack on the outlook for S&P 500 operating earnings per share next year at $285, up 18.8% y/y (chart). That's consistent with our productivity-led Roaring 2020s scenario for 2025 with real GDP rising 3.0%-3.5%, while inflation remains subdued around 2.5%. In our 2025 outlook, S&P 500 revenues per share should rise 5.1% to $2050 as the profit margin rises to a record 13.9%.
