US Economy

Relief Rally Ends Correction Risk

Mar 31, 2026 3 min read paid

Today's powerful relief rally in the stock market was fueled by news that President Donald Trump intends to declare victory in the war with Iran, according to an article in this morning's Wall Street Journal. Around noon, the market moved higher still on a report that the President of Iran said his country is ready to end the war if the US agrees to its 5-point

Ed Yardeni
Elias Griepentrog

Economy & Earnings Are Heating Up

Feb 2, 2026 4 min read paid

There's never a dull moment in our business these days. Events impacting the financial markets are happening so fast that we probably need to stop every now and then to update you on our latest forecasts. We are still targeting the S&P 500 at 7,700 by the end of this year and 10,000 by the end of the decade. The 10-year Treasury bond yield

Ed Yardeni

More Thoughts On The Latest 'Big Short' & Other Matters

Nov 5, 2025 3 min read paid

On Tuesday, investors sold AI-related stocks on news that Michael Burry had shorted Palantir and Nvidia. Today, investors realized that his most prominent short position by far is in Palantir, which currently has a forward P/E of 212.9. Nvidia has a forward P/E of 32.7 (chart). Except for Tesla, the other Magnificent-7 have lower forward P/Es than Nvidia. Burry is famous for his "Big

Ed Yardeni

The 'Big Short' Is Shorting AI

Nov 4, 2025 3 min read paid

Hedge fund manager Michael Burry was portrayed in the film The Big Short. He bet big against the housing market before the 2008 crash and made a fortune. Now, he is taking another "big short" position against Nvidia and Palantir, two widely held AI stocks (chart). A regulatory filing showed that his hedge fund, Scion Asset Management, has bought put options on the two high flyers. Investors are

Ed Yardeni

Economy Still Moving Forward

Oct 23, 2025 3 min read paid

The government shutdown continues to shut off the supply of many economic indicators. Tomorrow's CPI inflation rate for September is an exception. It is widely expected to remain stuck at 3.0% on a y/y basis. Based on a few conversations with friends about their businesses, we won't be surprised if the CPI is hotter than that, since President Donald Trump's tariffs may

Ed Yardeni

DEEP DIVE: Slim Pickin's Among Economic Indicators

Oct 15, 2025 4 min read paid

The following is an excerpt from our October 14 Morning Briefing for institutional investors. We are sharing it with our QuickTakes members today. It isn’t easy being an economist when the government shutdown shuts off the flow of economic data. Nevertheless, the Fed is still open for business and issuing economic releases. So are several private-sector sources of economic indicators. On balance, the data we do have suggest that

Ed Yardeni

DEEP DIVE: Is The US Economy Shock Proof?

Oct 9, 2025 5 min read paid

The following is an excerpt from our Morning Briefing (Oct. 6, 2025) for institutional investors. US Economy I: ‘Resilient’ Is Still the Right Word Since a very short, two-month recession in early 2020, the US economy has continued to grow despite numerous shocks (Fig. 3 below). The pandemic hit the US economy during February 2020 and quickly led to the March and April lockdowns that caused a recession during those

Ed Yardeni

Stock Market Oblivious To Weak Economic Data

Sep 3, 2025 3 min read

The S&P 500 rose today despite a batch of weak economic indicators over the past two days. Investors perceive that bad news is good news if it increases the chances of a Fed rate cut on September 17. Indeed, the odds of that happening are now 97.6%, according to the CME FedWatch Tool. That's a sure thing. We've been at 40% and are

Ed Yardeni

Is Fed About To Stimulate A Hot Economy?

Aug 28, 2025 3 min read

The bull market in stocks is making everyone who owns stocks richer. Gallup reported that 62% of Americans were invested in the stock market at the end of 2024 (chart). That's the highest since the end of 2008. We think the bull market is having a significant positive wealth effect on consumers who own equities, more than offsetting the debt effect on them of rising credit delinquencies. At

Ed Yardeni

Waiting For The Chair To Speak

Aug 21, 2025 3 min read paid

Stock and bond prices have been marking time over the past couple of weeks, waiting for Fed Chair Jerome Powell to speak tomorrow at 10 a.m. at the Jackson Hole Symposium. Meanwhile, today's batch of economic indicators supports our view that a Fed rate cut may not be warranted at the September 16-17 meeting of the FOMC if the other indicators released in the coming days also

Ed Yardeni

Still Banking On A Resilient US Economy

Aug 6, 2025 3 min read paid

It's a light day for economic news. Stock prices are drifting higher today because the Q2 earnings reporting season is going well, with very few exceptions. Notwithstanding the weakness of the latest employment report and the two surveys of purchasing managers, in manufacturing and non-manufacturing industries, stock investors are still betting on the resilience of the economy since it is continuing to deliver solid earnings. We are betting

Ed Yardeni

Investors May Be Gaining Confidence In the Resilience of the US Economy

Jul 24, 2025 2 min read paid

The four-week moving average of weekly initial unemployment claims provides a real-time indicator of the labor market (chart). It has been improving recently as the four-week average of jobless claims has been falling. Employers may be less concerned about the possible adverse impact of Trump's tariffs on the economy and on their companies. They should also be gaining confidence in the economy's resilience as validated by

Ed Yardeni

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