Ed Yardeni, president of Yardeni Research, is bullish on the S&P 500, predicting it will reach new highs. He sees several factors driving this growth.
A Resilient Economy and Fading Worries
Yardeni’s optimism stems from a belief in the US economy’s resilience. While acknowledging recent weakness, he points out that much of this data reflects past uncertainties, many of which are now dissipating. He specifically mentioned that while the trade war isn’t completely over, he expects resolution by summer’s end.
Cautious Investors, a Bullish Sign
Interestingly, Yardeni notes that the market’s current cautious sentiment is actually a positive indicator. He highlights the historical tendency of stocks to climb even when many investors are fearful and hesitant. The fact that sentiment indicators remain wary, even at near record highs, suggests there’s still room for growth as investors haven’t fully embraced the market’s recovery.
Market Highs and Future Outlook
The S&P 500 closed at a record high of 6,173 points on Friday. Yardeni believes this upward trend will continue, driven by a combination of economic strength and a lack of widespread investor enthusiasm. In short, he sees a strong bull market ahead.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making investment decisions.
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