Yardeni Has a Case of 'FEMO'
Speakers
Ed Yardeni
— President, Yardeni Research
Summary
Ed Yardeni raises his S&P 500 year-end target to 8,400, the highest on Wall Street, citing 'FEMO' — Fabulous Earnings Momentum. He argues that robust earnings growth, not speculative multiples, is driving the market, and maintains a 10,000 target for 2029.
- Yardeni lifts his S&P 500 year-end target to 8,400, now the most bullish on Wall Street.
- He coins 'FEMO' — Fabulous Earnings Momentum — to contrast with 1999-style FOMO.
- Q2 earnings ex-Alphabet/Amazon up ~25%, with similar strength expected in Q3 and Q4.
- Forward P/E around 20x is seen as reasonable given ongoing economic growth.
- His 8,400 target is derived from $415 EPS for next year and a 20x+ multiple.
- He keeps his 10,000 S&P 500 target for the end of 2029, calling the 2020s the 'roaring 2020s'.
- Yardeni may raise the 2029 target if earnings momentum continues.
Ideas
Earnings momentum drives S&P 500 higher.
S&P 500 target raised to 8,400 because of 'FEMO' — Fabulous Earnings Momentum. Earnings have been phenomenal, with Q2 up ~25% ex-Alphabet/Amazon and similar for Q3/Q4. The market is discounting $415 EPS for next year; multiplied by a bit over 20x forward P/E gives 8,400. Valuation around 20x is not low but not terribly high as long as the economy is growing. This is not a 1999-style FOMO melt-up ignoring earnings.
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This Bloomberg Markets video, published August 12, 2026, features Ed Yardeni discussing SPY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Ed Yardeni · Tickers: SPY