“From the end of 1998 to the beginning of 2000, the Nasdaq rose by more than 200%. We are now almost 100% tall and we may well be on the same path. Everything I look at points to melting.
This is Edward Yardeni, president of Yardeni Research, who took a cautious opinion in a recent CNBC interview about where the stock market is heading from here. The relentless rally in the cryptocurrency, he explained, is just one of the signals pointing to a potential weakness.
just staring at the chart and realizing when it’s going straight up is certainly a sign of abundance, of speculative surplus. ”
As for the chronology of when it could turn for the worse, Yardeni, a longtime Wall Street strategist, said the wider rally in the market should have legs for a while.
“In the first half of this year, the blue wave is likely to continue to be bullish,” he said. “We will receive more government spending. We will get the Federal Reserve to target much of this government spending through quantitative easing. I think interest rates will remain quite low. ”
But that could change quickly as the US economy begins to recover from the pandemic. “In the second half of the year,” Yardeni said, “we may be on the lookout for some consumer price inflation that wouldn’t be good for overvalued assets.”
Watch the interview:
No signs of melting on Sunday night, with Dow Jones Industrial Average YM00 futures,
S&P 500 ES00,
and high-tech Nasdaq Composite NQ00,
all pointing to a slow start to the week.