Bloomberg Surveillance · Friday, July 24, 2026
Economist Edward Yardeni expresses optimism about the economy's resilience, noting that the bear market in October 2022 was an aberration not linked to recession. He believes the market will continue to defy pessimists, even with potential Fed rate hikes, and forecasts the S&P 500 reaching 10,000 by the end of the decade.
“October twenty two was a very strange bear market. Usually bear markets are associated with recessions. There was no recession. As a matter of fact. At the time, I kept saying that we are experiencing the most widely anticipated recession of all times. That just isn't going to happen.”
“I just kept betting on the resilience of the economy, and so I kind of viewed the bear market as the aberration rather than the economy, which remained very strong. The earnings were holding up reasonably well, so I kind of viewed that as a panic attack.”
“Now, look, there were good reasons for concerns. The Fed was raising interest rates from zero to five point five percent of the Fed funds rate, the bond dealer was going up. Oil price has got a big spike, and yet the resiliency economy came through remarkably.”
“I've got ten thousands on the S and P five hundred by the end of the decade.”