This Should Be A Market Collapse… Why Isn’t It? | Ed Yardeni

Summary

Ed Yardeni discusses the market impact of the U.S. naval blockade of the Strait of Hormuz, maintaining a bullish outlook on equities and specific sectors. He argues that markets have already discounted the geopolitical crisis and sees resilience in the U.S. economy, strong earnings supporting stocks, and opportunities in oil, gold, and global equities. Yardeni also shares views on bonds, the Magnificent 7, and his reduced recession probability.

• Yardeni believes the market bottomed in late March and is looking beyond the Iran conflict.
• He maintains an S&P 500 target of 7700 for the year, supported by robust earnings estimates.
• The American oil industry could benefit from redirected tanker traffic due to the blockade.
• Gold is seen as a long-term bullish diversifier with a $10,000 price target by decade end.
• Bonds present a buying opportunity if the 10-year yield rises to 4.75%.
• He moved back to market weight on the Magnificent 7 after their forward P/E fell to 25.
• He remains bullish on global equities, specifically highlighting South Korea and Taiwan.
• Yardeni lowered his recession probability from 35% to 20%, citing economic resilience.