This is going to be one of the best Christmas seasons ever: Ed Yardeni

Long-term market bull Ed Yardeni delivers a dose of optimism towards the end of the year.

Yardeni, which is known for pursuing an investment strategy for Prudential and Deutsche Bank, expects the holidays to increase its shares deeper into record territory.

“This is going to be one of the best Christmas seasons ever,” the president of Yardeni Research told CNBC’s “Trading Nation” on Friday. “People are still coming out of this pandemic mentally, and they need to spend money. And I think they realize they have to spend now, because if you get too close to Christmas, a lot of the items may be sold out.”[ads1];

He expects willingness to spend despite the rise in inflation.

“Consumer confidence has been weak, and inflation has eaten into wage growth,” Yardeni said. “But the reality is that some of the lowest paid workers in America are seeing some of the best pay rises they’ve ever had.”

He speculates that higher-income workers with robust savings contribute to consumers’ capacity to compensate for inflationary pressures.

Yardeni’s starting point is that shares will continue to rise, and price pressure will ease when the problems in the supply chain are solved

“Companies are doing a good job of hammering loose and getting costs and keeping profit margins at record highs all-time,” he said. “It’s very, very impressive.”

The Dow, S&P 500 and technology-heavy Nasdaq ended the week at record highs. The S&P 500 is at 4,697.53, up 25% so far this year. It is also 2% away from Yardeni’s target for the end of the year.

“The market is moving pretty fast here”

“I have 4800 for the S&P 500 by the end of this year or the end of next week. I’m working on the timing. The market is moving pretty fast here, and then 5200 by the end of next year,” said Yardeni, who is also the author of the new book “In Praise of Profits !.”

Yardeni’s last positivity comes 17 months after his “ray of sunshine” market call to “Trading Nation”. In the midst of the Covid-19 shutdowns in the spring of 2020, he predicted that a “fairly wide beef market” was in store.

Now he suggests that the biggest difficulties associated with the pandemic are behind the United States.

“Enough people have been vaccinated to make the economy work well. There is really no way the pandemic is getting in the way of economic growth,” Yardeni said. “There’s probably another reason why we have another move to record highs in the market.”

Yardeni continues to recommend overweighting equities. Over the next 12 months, he likes the value between and small cap stocks offer investors. He also lists technology, economy and energy as the top choices in the S&P 500.

“We are looking at a continuation of the beef market,” said Yardeni.


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