economy
Yardeni says next two trading days will test his call that the market bottom is in
The head of Yardeni Research last week said the S&P 500's 9.1% retreat from its record closing high likely marked the low point.
TL;DR
- Ed Yardeni believes the stock market has bottomed, with geopolitical tumult offering buying opportunities.
- He concedes uncertainty, stating the next two trading days are critical to confirming his call.
- President Trump's recent threats regarding the Strait of Hormuz add to market volatility.
- Historically, the S&P 500 has performed well two years after major US military engagements.
- Current market valuations are attractive, with the index trading at 19 times earnings compared to 23 times previously.
- Solid market breadth and record-high profit margins contribute to a bullish outlook.