Deep Dive

DEEP DIVE: A Rolling Recession Is Underway

Oct 14, 2022 3 min read paid

Debbie and I have said it before: “The next recession may be the most anticipated recession of all times.” We have a reason to say it again: Jamie Dimon, the CEO of JPMorgan Chase yesterday said a recession is coming. The following is an excerpt from our Morning Briefing dated October 12, 2022.

Ed Yardeni

DEEP DIVE: The Valuation Question

Oct 5, 2022 4 min read paid

This is an excerpt from our Oct 4 Morning Briefing.Deep Dives (for paid members of QuickTakes) are occasional excerpts from our flagship research service which is available on a complimentary trial basis here. The air continued to come out of valuation multiples last week, as inflation remains persistent and interest rates remain elevated. There’s an inverse correlation between the S&P 500’s P/E and the

Ed Yardeni

DEEP DIVE: Fed Chair Jerome Powell Channels Former-Fed Chair Paul Volcker

Sep 26, 2022 3 min read paid

This is an excerpt from our Aug 30 Morning Briefing.Deep Dives (for paid members of QuickTakes) are occasional excerpts from our flagship research service which is available on a complimentary trial basis here. It seems that Fed Chair Jerome Powell recently read former Fed Chair Paul Volcker’s autobiography, Keeping At It (2018). Amazon’s summary states: “As chairman of the Federal Reserve (1979-1987), Paul Volcker slayed the inflation

Ed Yardeni

DEEP DIVE: Is Divine Disinflation Possible?

Sep 9, 2022 2 min read paid

This is an excerpt from our Sept 6 Morning Briefing.Deep Dives (for paid members of QuickTakes) are occasional excerpts from our flagship research service which is available on a complimentary trial basis here. Is disinflation possible without an economy-wide recession? History shows that inflation rarely falls on its own without a recession (Fig. 3). But we don’t think history necessarily has to repeat itself (despite how often it

Ed Yardeni

DEEP DIVE: Anatomy Of A Rolling Recession

Sep 2, 2022 5 min read paid

This is an excerpt from our Aug 30 Morning Briefing.Deep Dives (for paid members of QuickTakes) are occasional excerpts from our flagship research service which is available on a complimentary trial basis here. Is the only path forward a painful one, as Fed Chair Jerome Powell recently suggested? Is a recession inevitable now that Powell may be channeling his inner Volcker? Debbie and I still don’t expect that

Ed Yardeni

DEEP DIVE: The Tug-Of-War Continues Between the Bulls & The Bears

Aug 25, 2022 4 min read paid

The latest bear market started on January 3, 2022, when the S&P 500 peaked at a record-high 4796.56. That’s undisputable. But whether the bear market ended on June 16 at a closing low of 3666.77 is a question of great dispute. The bulls, including Joe and me, think so. The bears believe that the bear market isn’t over and that new lows are ahead.

Ed Yardeni

DEEP DIVE: Young Bull Or Old Bear?

Aug 18, 2022 2 min read paid

There is a fierce debate going on between the stock market’s bulls and bears. The question under consideration is whether the rally since June 16 is a new bull market or just a rally in the bear market that started on January 3? Over this period, the S&P 500 fell 23.6% from its record high of 4796 to 3666.

Ed Yardeni

DEEP DIVE: US Is The Safest Harbor In Stormy World Sea

Aug 12, 2022 5 min read paid

Our basic premise about the outlook for the global economy through the end of 2023 is that a recession is more likely to occur in Europe and China than in the US. Of course, a global recession that starts abroad could push the US economy into a recession if it is already vulnerable to one. On the other hand, global investors might conclude that the US is the only major

Ed Yardeni

DEEP DIVE: Switching Planets: Investors Now From Venus, Analysts From Mars

Aug 4, 2022 3 min read paid

Since our June 24 QuickTakes, we’ve been making the case that the bear market in the S&P 500 might have ended on June 16, when it was down 23.6% to 3666 from its record high of 4796 on January 3. We wrote: “[S]entiment indicators were so bearish that they were bullish. … On a fundamental basis, we’ve noted that commodity prices are showing signs of

Ed Yardeni

DEEP DIVE: How Much Rate Hiking Does QT2 Equal?

Jul 28, 2022 3 min read paid

Melissa and I have been wondering how much federal funds rate hiking does the current round of quantitative tightening (QT2) equal? Last week, in the July 20 Morning Briefing, we asked a similar question about the 10% increase in the US dollar index (DXY) since the start of this year.

Ed Yardeni

DEEP DIVE: The Dollar & TINAC (There Is No Alternative Country)

Jul 24, 2022 2 min read paid

As we observed yesterday, the geopolitical mess around the world continues to favor the US dollar, suggesting increasing net capital inflows from overseas into the US financial markets. That helps to explain the recent peaking of the bond yield, which should provide some support to the valuation multiples of stocks.

Ed Yardeni

DEEP DIVE: Braking China

Jul 17, 2022 2 min read paid

China continues to watch its real estate market deflate and its Covid cases inflate, while worries about its banking system grow. No wonder the recent rally in Chinese shares came to an abrupt halt (Fig. 4). Here’s some news that caught our eye:

Ed Yardeni

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