Stock market will crash in 60 days, best-selling author on Lehman collapse warns

Here's a contrarian perspective. I got this in an email this morning with some folks associated with John Mauldin. They would be more associated with free markets.

A Compelling Case for the Bulls


“The S&P 500 will end the year at 4,500 to 4,800.”

That’s Ed Yardeni’s bold call. A roughly 17.5% return for the year.

“Dr. Ed” has been in the markets for over 40 years. He was an economist at the Federal Reserve Bank of New York before becoming chief economist at EF Hutton and then a chief investment strategist at Prudential Equity Group and Deutsche Bank’s US equity division.

His call is based on his projection for the price-to-earnings ratio. He believes earnings will be robust this year despite today’s concerns of a recession. And the price multiple won’t be as low as those in the recession camp are expecting.

He, along with others I know (including Jared Dillian), believe October marked the low for the stock market—and that we’re back in a bull market. Dr. Ed acknowledges stocks are not all that cheap today, and there is still a lot of uncertainty around Fed policy.

Despite this week’s news of a certain bank in distress, Ed contends the financial system is in great shape and that we’re not seeing a credit crunch, which often precedes a recession.

I spoke with Dr. Yardeni on Wednesday before the SVB saga began in earnest. Here’s what he wrote to clients this morning:

The meltdown in SVB may be the beginning of a credit crunch for tech startups since the bank has been a major lender in that space. However, we doubt that it is the canary in the coal mine for the overall credit system.

On the other hand, the bank's woes may convince Fed officials to at least slow the pace of tightening.

It is easy to succumb to the bear side of the argument, but Dr. Yardeni makes a compelling case for the bulls.

You can watch my interview with Dr. Ed by clicking the image below. You can also download the transcript here. Or, if you’d rather listen via podcast, search for “Global Macro Update” on your favorite podcast player.



Yardeni Research is giving new readers a 30-day free trial to its newest service, Yardeni QuickTakes. I’ve been receiving QuickTakes for about six weeks now, and it has made its way into my regular reading rotation.

If you are interested in giving Dr. Ed’s work a test drive, you can get a free trial here.

Best regards,
 
goat said:
Concart has been trained to parrot the establishment narrative. There are no more fundamentals on value. No honor among thieves, so to speak. It goes all the way back to Greenspan lobbying for derivatives. No bankster will be prosecuted for their crimes so they lie, cheat and steal.

I would like Concart to explain the subprime mortgage crimes and too big to fail -- too big to jail, so we can have an adult conversation.
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The subprime crisis has been discussed in full for a decade. I'm not sure what's left for you not to understand. Too big to fail is just a reminder that corporations own this nation and the govt..
 
BartenderElite said:
I always find it kind of disturbing that partisans on both sides actually HOPE for economic collapse when their party isn't in power.

It's a glaring sort of commentary on where we are as a species right now. We've lost sight of common-sense priorities. Everything now is more about a partisan "win" than about what is truly best for people.
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I don't equate the economy with the market.

The market is a facade that is controlled by corporations and big players.


In fact, it runs in inverse proportion to the economy. Consumers typically suffer when the market is raging.
 
Althea said:
The subprime crisis has been discussed in full for a decade. I'm not sure what's left for you not to understand. Too big to fail is just a reminder that corporations own this nation and the govt..
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It's a subprime crime. Stop calling it a crisis. No one was prosecuted. Americans moved on as if this is the new norm. Keep an eye on Wall Street so we can chat about the next theft of the US treasury.
 
goat said:
It's a subprime crime. Stop calling it a crisis. No one was prosecuted. Americans moved on as if this is the new norm. Keep an eye on Wall Street so we can chat about the next theft of the US treasury.
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Some players paid billions in fines, as they should have. I'd rather see prison time for sure. What exactly do you think Concart would add?
 
Althea said:
Some players paid billions in fines, as they should have. I'd rather see prison time for sure. What exactly do you think Concart would add?
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I want Concart to explain the fundamentals of value. My argument is there are none. It's nothing but lie, cheat and steal.
 
Biden is corrupt beyond all thinking.

From possession of top secret documents,
To Ukraine/Hunter scandal,
To payments made to the family by the CCP,
To failure to shoot down a spy balloon until it collected all the data it wanted,
To promotion of ESG/DEI/Climate Change,
To open borders,
To supply chain issues,
To US airline collapse
To the coming collapse of the economy ...
To out of control inflation, borders and crime
Much of it illegal, all of it corrupt, and all of it destroying our country.

Biden is monumentally corrupt, and is beholden to the CCP.

He's a clear and present danger to this country, and should be impeached and tried for treason.
 
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