Ed Yardeni

Risk & Reward In Emerging Markets

Oct 24, 2024 3 min read paid

The three-day BRICS summit of emerging market economies (EMEs) in Kazan, Russia concluded today. The group launched by Brazil, Russia, India, and China in 2006 has done little in terms of rivaling US global economic and financial hegemony. However, the Russia-Ukraine war and fears of financial sanctions imposed by the US and its allies on adversaries have caused many countries to align closer to Russia and China or apply to

Ed Yardeni
Eric Wallerstein

Bond Vigilantes Started Voting Early

Oct 23, 2024 3 min read

The US presidential and congressional elections aren't until November 5, but the Bond Vigilantes are voting early. The 10-year US Treasury bond yield has risen a whopping 63 basis points to 4.25% since the Fed's September 17-18 meeting (chart). In exit polls, the Bond Vigilantes are saying they are voting against Fed Chair Jerome Powell's dovish monetary policy because the economy is running

Ed Yardeni
Eric Wallerstein

The Front Cover Curse

Oct 22, 2024 1 min read

We've been recommending overweighting the US in global equity portfolios since 2010. We still are, and it is still working (chart). We started writing about the Roaring 2020s in the US in 2020. For example, on August 11, 2020, we wrote: "We live in interesting, though not unprecedented, times. The Roaring 1920s could be a precedent for the Roaring 2020s. As Mark Twain observed: 'History doesn’

Ed Yardeni

Lost Decade Ahead For Stocks With Only 3% Annual Returns?

Oct 22, 2024 3 min read

We've been asked to comment on yesterday's grim forecast by economists at Goldman Sachs that the S&P 500 will produce annualized returns of only 3% (before accounting for inflation) over the next 10 years. They reckon that the range of possible outcomes includes -1% at the low end and +7% nominal returns at the high end. In our opinion, even Goldman's optimistic

Ed Yardeni
Eric Wallerstein

Sell Bonds, Buy Gold?

Oct 21, 2024 3 min read

Yes, that has been our advice since mid-August. Our August 19, 2024 Morning Briefing was titled, "Get Ready To Short Bonds?" We wrote: "Bond investors may be expecting too many interest-rate cuts too soon if in fact August’s economic indicators rebound from July levels and the Fed pushes back against the markets’ current expectations for monetary policy. So we are expecting to see the 10-year Treasury

Ed Yardeni
Eric Wallerstein

Anatomy of a Meltup

Oct 20, 2024 3 min read paid

Ed Yardeni
Eric Wallerstein

The Economic Week Ahead: October 21-25

Oct 20, 2024 3 min read paid

The economic week ahead will provide updates on the overall economy, manufacturing, and housing. Last week's jobless claims (Thu) will also be important for gauging how significant bad weather and worker strikes impacted the labor market. We expect more upside surprises during the current earnings season for Q3. The Nasdaq is likely to rise to a new record high before the end of the month and is currently

Ed Yardeni
Eric Wallerstein

DEEP DIVE: Why Aren't Consumers Happier?

Oct 19, 2024 6 min read

The Misery Index is the sum of the unemployment rate and the inflation rate (measured as the yearly percent change in the CPI) (Fig. 4 below). It was 6.5% during September, well below its average since 1947 of 9.1% (Fig. 5 below). So misery is relatively low. On the other hand, the Consumer Sentiment Index (CSI), which is inversely correlated with the Misery Index, was 68.9 during

Ed Yardeni
Eric Wallerstein

US Economy Is Hot, Hot, Hot

Oct 17, 2024 3 min read

Today, the Atlanta Fed's GDPNow tracking model raised Q3's real GDP growth rate from 3.2% to 3.4% (saar) following a roaring September retail sales report (chart). Real consumer spending was revised up from 3.3% to 3.6%! Jobless claims fell despite worker strikes and hurricanes. Manufacturing also held up well notwithstanding Boeing layoffs and bad weather. Today's data further confirm our

Ed Yardeni
Eric Wallerstein

Big Bank Earnings Are Rip Roaring

Oct 16, 2024 3 min read paid

The third year of the current bull market in stocks got off to a good start this week. It's likely that the Q3 earnings reporting season will be better than expected as suggested by the results reported yesterday and today by some of the major companies in the S&P 500 Financials sector. On Sunday, we wrote that industry analysts expected S&P 500 earnings to

Ed Yardeni
Eric Wallerstein

Dr Ed's Video Webcast 10/16/24

Oct 16, 2024 1 min read paid

As the bull market turns two, Dr. Ed fondly recollects the performance of the young raging bull. At times, the bull charged and at times stomped its hooves on the ground in reaction to the monetary policy, earnings expectations, and economic outlooks waved in front of it. Yet the bull trampled even our heady expectations this year, passing our year-end S&P 500 forecast ahead of schedule. At the

Ed Yardeni
Eric Wallerstein

Geopolitical Hot Spots

Oct 15, 2024 3 min read paid

With the Fed in easing mode and US economic growth remaining resilient and even robust, we are still wondering what could possibly go wrong. We remain optimistic on the economic outlook and bullish on the outlook for stocks. We continue to monitor the geopolitical risks that might revive inflation and depress global growth. On Friday, JPMorgan Chase CEO Jamie Dimon said that these risks are "treacherous and getting worse.

Ed Yardeni
Eric Wallerstein

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