Ed Yardeni

Bond Vigilantes Put 5% Yield In Crosshairs

Jan 7, 2025 3 min read paid

The US economy continues to roar. December's ISM purchasing managers survey showed that services activity remains strong. The JOLTS data, albeit a bit stale from November, showed job openings jumped. That aligned with the recent rise in measures of business and consumer confidence. So why did stocks turn lower today? The answer lies with the bond market. The prices-paid index in the ISM nonmanufacturing PMI jumped from 58.

Ed Yardeni
Eric Wallerstein

Will SMidCaps Continue To Underperform?

Jan 6, 2025 3 min read paid

Today was another good day for technology stocks, semiconductor stocks, and the Magnificent-7. In the S&P 500, they were up 1.44%, 3.28%, and 2.01%. We continue to recommend overweighting the LargeCap S&P 500 Information Technology and Communication Services sectors. We aren't as keen on the MidCap S&P 400 or the SmallCap S&P 600 (collectively the “SMidCaps”), or

Ed Yardeni
Eric Wallerstein

MARKET CALL: AI Coming To Vegas, Baby, Vegas!

Jan 5, 2025 3 min read paid

The Q4-2024 earnings reporting season is about to start, led by the big banks. We expect that during their conference calls, company managements will discuss how AI may be starting to boost their productivity. In effect, they'll be trying to convince investors that every company is now a technology company either producing AI hardware and software or using them. The AI excitement will be palpable this week. As

Ed Yardeni
Eric Wallerstein

The Economic Week Ahead: January 6-10

Jan 5, 2025 3 min read paid

The economic week ahead is chockful of labor market indicators for November and December. We're expecting them to beat expectations. As long as corporate earnings continue to reach new record highs, companies are likely to hire more workers and increase real wages (chart). Ultimately, that supports consumer spending and stock prices. Still, there are a number of potential headwinds for stocks, not the least of which is rising

Ed Yardeni
Eric Wallerstein

The Great (Yield) Fall Of China

Jan 2, 2025 3 min read paid

Today's Wall Street Journal reports: "Now, as Trump prepares for his second administration, American companies have largely gone silent about the importance of the U.S.-China relationship. That is because American businesses no longer see China as the land of opportunity. The promise of China’s market has faded as its once-booming economy hits trouble." We've been saying for a while that China

Ed Yardeni
Eric Wallerstein

Dr Ed's Video Webcast 1/1/25

Jan 1, 2025 paid

Ed and Eric look forward to the new year. ❇️Exclusive Early Access for Paid Members: Below, you'll find Dr. Ed's latest webcast. Paid members can enjoy immediate access to the video. This content will become available to the public at a later date—don't miss out on early insights, consider upgrading today!

Ed Yardeni
Eric Wallerstein

2024 Was A Roaringly Good Year For Stocks

Jan 1, 2025 3 min read

This is the time of year when we all wish one another a healthy, happy, and prosperous new year. The past two years were certainly prosperous ones for equities investors, as the S&P 500 rose 23.3% following a 24.2% gain in 2023. Those gains more than offset the 19.4% loss during 2022. On average, the S&P 500 is up 9.4% per year

Ed Yardeni
Eric Wallerstein

Some Air Coming Out Of Post-Election Balloon

Dec 30, 2024 3 min read paid

The post-election rally has been losing steam since early December (chart). The S&P 500 peaked at a record high on December 6. From a sentiment perspective, there have been too many bulls. From a technical perspective, breadth has been narrowing again as a few LargeCap momentum stocks continue to outperform. From a fundamental perspective, while earnings growth should remain bullish, the Fed may be done easing monetary policy

Ed Yardeni
Eric Wallerstein

MARKET CALL: Crosscurrents & Riptides

Dec 29, 2024 3 min read paid

January could start the year off with some volatility in the bond and stock markets. There are lots of fundamental and technical crosscurrents and a few possible riptides. The Q4 earnings reporting season during January should show a solid increase in S&P 500 operating earnings per share of at least 8.5% y/y (chart). We expect closer to a 10.0% increase since positive earnings surprises regularly

Ed Yardeni
Eric Wallerstein

Bond Vigilantes Pushing Back Against Reckless Monetary & Fiscal Policies

Dec 28, 2024 3 min read paid

The 10-year Treasury bond yield is up 100bps since the Fed started lowering the federal funds rate (FFR) by 100bps on September 18 (chart). Even the 2-year Treasury yield is up about 75bps. We warned about this happening back in August. The Bond Vigilantes are sending a loud warning message. They aren't convinced Donald Trump, the new sheriff coming to town, will maintain fiscal law and order any

Ed Yardeni
Eric Wallerstein

Ahead of the Earnings Pack

Dec 27, 2024 3 min read paid

We've been bullish on the stock market since October 2022. We remain bullish, targeting 7000 on the S&P 500 by the end of next year. That puts us near the head of the pack (chart). Here's more on earnings and valuation: (1) Our forecast for revenues, earnings & margins. We are the head of the pack on the outlook for S&P 500

Ed Yardeni
Eric Wallerstein

Whatever It Takes? China Is Stimulating, Again.

Dec 26, 2024 3 min read paid

There may soon be fewer jobs for economists in both the US and China. On Monday, December 23, Elon Musk (one of the DOGE Boys) tweeted that the "Fed is absurdly overstaffed." On its website, the Fed in Washington brags: "The Federal Reserve Board employs more than 500 researchers, including more than 400 Ph.D. economists, who represent an exceptionally diverse range of interests and specific areas

Ed Yardeni
Eric Wallerstein

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