Tags: ed yardeni | bull | market | stock | earnings

Ed Yardeni: Earnings Slowdown Won't Stop Bull Market

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By    |   Thursday, 28 February 2019 09:46 AM

Newsmax Finance Insider Ed Yardeni predicts that stocks will continue to roar to new highs despite an earnings slowdown.

A long-time market bull, he also went against negative sentiment in December as stocks plunged.

Now, the Newsmax Finance Insider is going contrarian against bears who are warning investors that the earnings slowdown will derail the 2019 rally.

"There's some bearishness because the comparisons for earnings on a year-over-year basis are probably go to be flat — maybe even slightly negative in the first half [of the year]," the Yardeni Research chief investment strategist said Wednesday on CNBC.

 "But beyond that, I think we are going to see an economy that's growing with growing earnings," he said.

"Why are stock prices continuing to rebound from last year's Christmas Eve low now that everyone is curbing their enthusiasm for earnings — with some alarmists predicting that that low will be tested once companies confirm how bad earnings are this year? Good question," Yardeni wrote in a research note this week.

With the stock market roaring off the December low and 10-Year Treasury yields under 3 percent, Yardeni calls it an ideal environment to be in equities.

"We never really got credit for the fundamentals of last year. Earnings were up almost 25 percent last year, and the market took a dive at the end of last year — taking away about 6 percent from the S&P 500," he said. "Some of this is just catching up to the underlying fundamentals which were really extraordinarily good."

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Newsmax Finance Insider Ed Yardeni predicts that stocks will continue to roar to new highs despite an earnings slowdown.
ed yardeni, bull, market, stock, earnings
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2019-46-28
Thursday, 28 February 2019 09:46 AM
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