ROARING 2020s: Wall Street's Analysts Even More Bullish On Earnings Than Us!

The US economy remains resilient, and so do corporate earnings. The US economy has passed several stress tests in recent years. The war in the Middle East is proving to be the latest stress test for the US economy, which seems to be passing it, so far. The macroeconomic data released in recent weeks confirms this resilience. The pre-war growth trajectory was solid enough that we were on the verge of raising our already bullish earnings estimates for 2026 and 2027. The war stopped us from doing that.

It seems Wall Street analysts haven't received the memo about the war. Their consensus estimates for S&P 500 revenues and earnings for this year and next year have been rising noticeably in recent weeks. We thought our pre-war estimates were bullish. The analysts are even more bullish. For now, we are sticking with our pre-war earnings forecasts, which support our 7,700 forecast for the S&P 500 by the end of this year. It could be higher if the analysts' estimates hold.