Ed Yardeni, president of Yardeni Research, doubles down on his call that the recent equity sell-off has run its course, and those who are waiting for much lower levels will likely be disappointed.
In a new CNBC interview, Yardeni points to a specific date as the turning point for US equities.
He also says the upcoming earnings season will confirm the resilience of both corporate profits and the broader US economy.
“The March 30th low, I think, was it for this pullback. It turned out to be a correction for the NASDAQ, but not for the S&P 500. But, you know, the earnings season is up ahead here, and I think it’s going to confirm that the earnings story is remarkably resilient. The economy has been remarkably resilient.”
Earlier this month, Yardeni said that the S&P 500 had bottomed out after hitting a low of 6,316 on March 30th.
The Wall Street veteran also says geopolitical uncertainty does not pose a lasting threat to equities, noting that history consistently points in one direction.
“I think we have some experience, even recent experience, with these kind of events. Geopolitical crises tend to be buying opportunities. And we saw that last year when we had the whole tariff issue. We had a bear market in 2022. No recession, but it only lasted nine months and turned out to be a great buying opportunity. So when we get one, they’re buying on the dip.”
As of Monday’s close, the S&P 500 is trading at 6,816.
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