The president of Yardeni Research believes that recent geopolitical tensions are unlikely to derail the stock market.
In a new CNBC interview, Ed Yardeni say the market had already reached its recent low and expressed confidence that the coming earnings figures will strengthen the strength of the economy.
“I think it was still the March 30 low because of this pullback. It turned out to be not even a correction for the Nasdaq, but not for the S&P 500. But you know earnings season is here. And I think this will confirm that the earnings story is remarkably resilient.”
Yardeni says markets have historically shown the ability to withstand geopolitical shocks, often turning periods of heightened uncertainty into opportunities for investors.
“Well, I think we have some experience, even recent experience, with these types of events. Geopolitical crises are often buying opportunities. And we saw last year, when we had the whole tariff thing, that we had a bear market in 2022. No, not a recession, but it only lasted nine months and turned out to be a great buying opportunity.”
In addition, Yardeni said the US economy and financial markets have shown remarkable resilience despite recent weak data and escalating tensions in the Middle East, including concerns about potential disruptions to Iranian ports and global energy supplies.
He believes that the market’s relatively muted reaction to these developments underlines investor confidence that such geopolitical events are unlikely to cause lasting economic damage.
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