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S&P 1,565 in U.S. ‘Coiled Spring’ Economy: Yardeni

Despite worries about all the factors that could derail the U.S. economy, strong earnings look to push the S&P 500 toward 1,565 by year-end, Ed Yardeni of Yardeni Research told CNBC on Thursday.

“This bull market since March 2009 really has been a series of relief rallies following sell-offs triggered by concerns that we’re about to have an apocalypse. It seems to me the market just loves postponed apocalyptic scenarios,” he said on “Fast Money.”

“When we worry that things are going to fall apart and suddenly they’re not going to fall apart imminently, the market goes up,” he said, adding, “I think the U.S. economy is a coiled spring.”

Yardeni noted that it looked likely the federal “fiscal cliff” that would trigger automatic defense spending cuts might be postponed to the middle of next year. He also sounded positive that the “euro mess” would be cleaned up and doubted that the Chinese economy would experience any disruptive shocks.

Earnings would continue to drive the stock market through the end of 2012, he said, with a multiple of 14 likely.

“We know all the things that can go wrong, and we’ve been worrying about them for three years,” he said. “The market’s figured that it’s really P/E times E. It’s earnings times the valuation of those earnings.”

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Oct. 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Mike Murphy is long AAPL; Mike Murphy is long WFC; Mike Murphy is short XLF; Mike Murphy is long TGT; Mike Murphy is long EBAY; Mike Murphy is long S; Mike Murphy is short GPS; Josh Brown is long MRK; Josh Brown is long XLV; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long SBUX; Stephanie Link is long EBAY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU.

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