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Ed Yardeni says the stock market is a great place for investors to enter.
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The market vet still believes stocks are in the midst of a long-term bull market that could last until 2030.
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Yardeni expects stocks to rise 50% by the end of the decade.
The recent pullback in stocks could be a big “buy” signal for investors, according to market veteran Ed Yardeni.
The head of Yardeni Research pointed to the recent decline in stocks, with The Dow Jones fell more than 600 points on Thursday After services and manufacturing data indicated more inflationary pressures. This has raised new concerns that interest rates will remain high.
Stocks remain in a long-term uptrend, Yardeni said, meaning the pullback could be a new opportunity for investors who have been waiting on the sidelines.
“My advice to people investing in the market is to stay in it,” he said. Bloomberg Thursday. “Overall, I kind of expect the U.S. economy to continue to do well… I think all the stocks that are being sold off today are probably the ones that are coming back, and this is probably going to be a short-term opportunity to jump on board what I think is a longer-term bull market.” “
Although inflation remains above the Fed's 2% target, the economy is generally strong, with GDP continuing to grow and unemployment falling to historic lows. Yardeni pointed out that consumers have stopped spending on goods, but they are spending more money on services, which supports the economy.
“Overall, I think we're looking at an economy that remains remarkably resilient. While everyone is coming to the conclusion that we're going to get higher rates for longer because that's what Fed officials are pointing to, I see that we've done well at this point,” Yardeni said. Levels of interest rates, such as in the stock market.
Yardeni has been advocating for months that stocks are still in a long-term bull market and could rise through the rest of the decade. Recently, he predicted that the S&P 500 could rise as much as 50% and that the Dow Jones Industrial Average could reach 60,000 by 2030.
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