Stock Market Outlook: Golden Age of Investment Will Lead to Massive Rally

• The stock market may be entering a “golden age of investing,” says strategist Mary Ann Bartels.
• Improved AI performance, tax cuts and fiscal stimulus could lead to significant gains in the S&P 500 by 2030.
• Bartels predicts the S&P 500 could reach 13,000 by the end of the decade.

The stock market could be entering a “golden age of investing” that could bring huge returns to investors, says veteran strategist Mary Ann Bartels of Sanctuary Wealth.

In her 2025 forecast, Bartels explained why she believes the S&P 500 could more than double between now and the end of the decade.

“We believe this is primarily driven by productivity gains driven by artificial intelligence and a strong U.S. economy, supported by continued lower corporate taxes, lower interest rates and continued stimulus from Biden administration regulations that allow companies to continue to post strong earnings. growth,” Bartels said.

According to Bartels, there are striking similarities between today’s technological revolution in artificial intelligence and the technological advances of the 1990s with the Internet and even the 1920s with radios and cars.

This, coupled with interest rate cuts by the Federal Reserve, suggests the stock market could be headed down a similar path to the 1990s or 1920s.

“If we want to repeat this boom and bust cycle like the 1920s, 1950s, 1960s, 1980s and 1990s, we believe that we are in the early stages of a boom and that the stock market will not peak until 2029-2030,” Bartels said.

Bartels said she expects the S&P 500 to trade between 8,000 and 10,000 by 2030, but added that it could reach 13,000, which represents 118% upside potential from current levels.

“If we’re right, this will be a golden age of investment for the second time in 50 years,” Bartels said.

For 2025, Sanctuary Wealth has a year-end S&P 500 price target of 7,200 to 7,400, which is the most bullish forecast on Wall Street at the moment and would mean another year of 20% gains for the stock after the strong returns seen in 2023 . and 2024.

Bartels’ bullish view on the stock is supported by the fact that market valuations are nowhere near extreme, as measured by the 5-year P/E Z-score, and that profitability and earnings growth are improving.

“In 2025, we expect earnings to continue to grow, especially in technology-related companies, so we do not believe valuations will hold back share price gains,” Bartels said.

According to Bartels, another factor favoring the future of the stock market is the continued accumulation of “mountains of money.”

Bartels emphasized that there is about $7 trillion in money market funds that can provide purchasing power for stocks.

“Investors don’t put all their money into it,” Bartels said, adding that margin debt in the stock market doesn’t mean investors have everything in the stock either.

“We believe that this money needs to be used and leverage needs to be increased. If we are right, this will drive stock prices to levels that are almost unfathomable today,” Bartels said.

“In our view, this is truly a golden age of investing.”