Wall Street veteran Ed Yardeni says the S&P 500 has printed a market bottom after grinding down for weeks, even amid lingering geopolitical risks.
In a new CNBC interview, the Yardeni Research president says he believes the stock market has bottomed out on Monday, after falling to a low of 6,316.
“But basically, I’ve stuck with my 7,700 S&P 500 by the end of the year. And I had been thinking that we could get a 10 to 15% correction. The S&P 500 dropped 9%. But there’s an exit ramp. That’s what the markets were looking for.
They, at first, were very concerned that this could be an endless war. There’s no obvious way out. And the obvious way out is for the president to declare that we won and get out. And that’s effectively what he did in his speech [on Thursday] night. And that’s what all the reports were coming out on Tuesday. So, I think Monday was the bottom, yes.”
Yardeni is also looking at the tech sector, which was beaten down during the market pullback. According to the analyst, tech now has legs for a comeback.
“I think tech got not cheap, but relatively cheap again. And I thought on December 7th that it was time to underweight the Magnificent 7. A few days ago, I said, ‘Hey, look, this PE has gone down from like 31 down to 25. It actually got down to 22 over the past couple of days. But I went back to market weight on the Magnificent 7.
And tech, I think, also got relatively cheap. So the short answer is yes.”
As of Thursday’s close, the S&P 500 is trading at 6,582.
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