Tags: ed yardeni | goldilocks | economy | oil | metals | stocks

Ed Yardeni: 'Goldilocks Global Economy' Will Keep Boosting Oil, Metals, Stocks

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By    |   Thursday, 16 November 2017 04:18 PM

Economic guru Ed Yardeni predicts that bullish activity in commodities suggests the stock market will break more records.

He says the rise in oil and industrial metal prices is likely to continue — a sign that demand is stimulating economies across the world. As a result, it should give the equities rally more juice.

"I watch commodities very closely," the Yardeni Research' president recently told CNBC.

"They are really, really good at telling us what is going on in the global economy, " said Yardeni,. also a Newsmax Finance Insider.

"The old adage in the commodity pits is 'the best cure for high commodity prices is high commodity prices'," said Yardeni.

"It's still sort of Goldilocks for the global economy. It's strong, but not too strong," he said.

"The latest version of the bull case got started late last year, and it wasn't just President Trump winning and the perception we were going to have tax reform, less regulation and tax cuts," said Yardeni.

"The global economy started to show more strength, and I think that had a lot to do with earnings turning around and showing better comparisons this year."

To be sure, stocks rose and the dollar edged higher against a basket of major currencies on Thursday after the U.S. House of Representatives passed its version of a tax overhaul bill.

The House approved a broad package of tax cuts affecting businesses, individuals and families, moving Republicans and President Donald Trump an important step closer to the biggest tax code overhaul in a generation, Reuters reported.

“The tax plan isn’t a foregone conclusion but it passed the lowest hurdle in the House,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

“The even higher hurdle is to have something pass in the Senate. The reconciliation will be the real measure if it happens,” he said.

(Newsmax wire services contributed to this report).

© 2021 Newsmax Finance. All rights reserved.


   
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Economic guru Ed Yardeni predicts that bullish activity in commodities suggests the stock market will break more records.He says the rise in oil and industrial metal prices is likely to continue - a sign that demand is stimulating economies across the world. As a result, it...
ed yardeni, goldilocks, economy, oil, metals, stocks
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2017-18-16
Thursday, 16 November 2017 04:18 PM
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