As the bull market officially enters its second year and investors enter its third year, Ed Yardeni, president of Yardeni Research, explains what lies ahead.
Yardeni expects earnings to continue to boost the market, especially since valuations are “already stretched.” He added that rising valuations could cause a crash, telling Yahoo Finance: “You can still make a lot of money from here. But you have to think about when to get out. And you have to. It must be done,” he said. It comes out quite significantly. ”
Overall, he expects the earnings to drive market growth and support the bull market. “We think earnings will drive the market up, probably going from about $250 per share this year to $275 per share next year.”By the way, I think it’ll be $300 per share the year after that. . That’s about 20x or $8,000 on the S&P 500 index (^GSPC). So I think it’s still a bull market right now. ”
Given this market background, Yardeni explains that he is overweight technology (XLK), industrial stocks (XLI), and financial stocks (XLF). But he is “less enthusiastic” about utilities (XLU) and other interest rate-sensitive areas, adding: “I don’t think rates will go as low as the market is discounting them.”
To find out what Yardeni thinks about the bond market, watch the video above (^TYX, ^TNX, ^FVX).
For more expert insights and analysis on the latest market trends, learn more about Extended Time of Market Domination here.
This post was written by Melanie Leal
