Mary Ann Bartels, a senior strategist at Sanctuary Wealth, stated in her 2025 outlook report that the usa stock market may be entering a 'golden age of investment' that will bring huge returns to investors.

She believes that $S&P 500 Index (.SPX.US)$ it is expected to soar to 7200-7400 points next year; from now until 2030, the s&p 500 index may more than double to a peak of 13,000 points.

The AI revolution will lead the US stock market into a golden age

Bartels believes that today's artificial intelligence technological revolution has remarkable similarities to the technological advancements of the internet in the 1990s and even the radio and automotive technology advancements in the 1920s.

In addition to the Fed rate cuts factor, this indicates that US stocks may follow a similar path to that of the 1990s or 1920s.

Bartels stated: "We believe that this is fundamentally driven by the productivity gains brought by artificial intelligence and the robust US economy, while also benefiting from reduced company tax rates, lower interest rates, and the continued stimulus from the Biden government's policies, enabling companies to continue achieving strong profit growth."

"If we are to repeat the patterns of the 1920s, 1950s, 1960s, 1980s, and 1990s, we believe we are in the early stages of prosperity, and the stock market will not peak until 2029-2030."

Bartels expects the S&P 500 index to soar to between 8000 and 10000 by 2030. She even anticipates the index could reach as high as 13000 points, which represents a 118% upside potential from the current level (5987 points).

Bartels stated: "If we are correct, this will be the golden age of investment for the second time in the past 50 years."

Could the S&P 500 rise to 7400 points next year?

For 2025, she believes the year-end target price range for the S&P 500 index is between 7200 and 7400 points – the most optimistic expectation on Wall Street so far, also implying she expects a further 20% increase in US stocks in 2025 after strong growth in 2023 and 2024.

She mentioned that despite two consecutive years of gains in the US stock market, the market valuation is not close to extremes (measured by the 5-year PE), and profit margins and earnings growth of US companies are rising.

Bartels stated: "In 2025, we expect corporate profits to continue growing, especially for technology-related companies, so we believe valuations will not limit stock price increases."

Bartels also mentioned another factor that is bullish for the US stock market is the "mountains of cash" that are steadily accumulating.

She emphasizes that nearly $7 trillion is available in US money market funds, which can serve as a source of purchasing power for the stock market.

"Investors have not all entered the market," Thales said, "We believe that this money needs to be deployed, leverage needs to be built. If we are correct, this will push the stock price to levels that are almost incomprehensible today... In our view, this is indeed the golden age of investment."

Editor/rice