Bloomberg Surveillance Single Best Idea with Tom Keene: Ed Yardeni
Aug 25, 2025
Dive into the intricacies of futures markets versus ETFs, exploring how liquidity affects trading opportunities. Discover insights on the implications of nominal GDP growth and inflation on corporate earnings, showcasing the strength of recent performances. The conversation also projects the potential for the S&P 500's growth, with a bold prediction that it could hit 10,000 by 2029 if earnings reach $400 per share. Tune in for an engaging analysis that could reshape your market perspective!
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Jackson Hole Talk On Nominal GDP
- Tom Keene described a lively Jackson Hole conversation focused on nominal GDP and its components: real growth and inflation.
- Ed Yardeni emphasized that strong nominal earnings (revenues) explain current market highs and record S&P earnings.
Nominal Earnings Drive Market Valuations
- Earnings and revenues are measured in nominal terms and drive stock valuations through profit margins.
- Strong Q1 and Q2 earnings helped push the S&P to record highs and support elevated valuations.
S&P 500 To 10,000 By 2029
- Assuming historical growth, the S&P 500 could reach 10,000 by year-end 2029 driven by earnings expansion to about $400 per share.
- Better-than-normal earnings growth would push the index even higher than that baseline projection.