The rise of ChatGPT could jump start the Roaring 20s for stocks and solidify a new bull market

• The rise of ChatGPT could spark the Roaring 20's for the stock market, according to market veteran Ed Yardeni.
• Yardeni highlighted that artificial intelligence is capable of boosting productivity and living standards.
• "If so, then we can spend a lot less time obsessing about what the Fed will do next," Yardeni said.

The rise of ChatGPT could usher in the Roaring 20's for the stock market and solidify the recent rally as a new bull regime, according to market veteran Ed Yardeni.

Yardeni said in a Thursday note that he views the rally in stocks since the mid-October low as a new bull market rather than a bear market rally, highlighting that the S&P 500 recently tested the all-important 4,200 resistance level and took out the February 2 closing high of 4,179.

"The market has climbed a Wall of Worry thanks to Wall Street's Worriers, who've predicted that the banking and debt ceiling crises could make their widely expected imminent recession worse," Yardeni said.

What has Yardeni all bulled up is the idea that generative artificial intelligence, through the use of chatbots like ChatGPT, could spark a surge in productivity and improve standards of living throughout the economy. If that happens, it could mean a lot of the worries on investors' minds, like a recession, a banking crisis, and potential debt ceiling disaster, could melt away.

"This may be the event that launches the Roaring 2020s. If so, then we can spend a lot less time obsessing about what the Fed will do next and focus on how technology is boosting productivity and the standard of living throughout the economy," Yardeni said.

Yardeni isn't the only one that sees generative AI having a positive impact on economic growth. Billionaire investor Paul Tudor Jones recently told CNBC that AI will drive a productivity boom similar to what the personal computer and internet did in the 1980's and 1990's, respectively.

"I do think the introduction of large language models [and] artificial intelligence, is going to create a productivity boom that we've only seen a few times in the last 75 years," Jones said, adding that the stock market could ultimately see average annualized gains of 15%.

Goldman Sachs also has a bullish view on the impact of AI on the economy, arguing in a recent note that it could raise global GDP by an astounding 7%. "Generative AI can streamline business workflows, automate routine tasks and give rise to a new generation of business applications," Goldman Sachs said.