The chief investment strategist of the investment group BMO is raising his end-of-year price target for the S&P 500, saying that the rest of 2025 could be setting up the perfect storm for the market to surge.
In a new interview on CNBC Television, BMO executive Brian Belski says that he envisions the S&P 500 hitting 7,000 points by the end of the year while rejecting comparisons between today’s artificial intelligence (AI) industry and the dot-com bubble of the late 1990s and early 2000s.
“I believe that bubble is probably the most overused term in our industry, I think to have a bubble, quite frankly, means that you have to have a lot more frivolous things going on. And to keep it really simple, you have to have everybody making money. And I don’t think everybody’s making money…
This is a market that has been discounting valuation… because of the true secular momentum of AI. AI companies, tech companies right now, are very different than they were in 1999, 2000. They have cash. Some of them paid dividends, some of them have great cash flow.
And by the way, from an earnings perspective, the technology sector has become the most discernible, consistent earner in the entire market. So with respect to our 7000 number, that was our bull case all along.
And that’s why we said we’ve reached our bull case in terms of where we think markets are going. And that 7000 number we first put out in November of 2024.”
Belski goes on to note that 2025 is setting the stage up for “Goldilocks,” or when a confluence of events lines up just right for the market to rally.
“I think 2025 is setting the table for Goldilocks. The last real kind of Goldilocks period we had [was] in 2019, but it didn’t last as long as it probably should have because of Covid.
I believe that 2025 could very well be the table setter for Goldilocks for the next two years, very similar to ’94 and how it set the table for 1995 and 1996.”
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