Ed Yardeni Says Dip-Buying Opportunities in This Market Are Wishful Thinking
Speakers
Ed Yardeni
— President, Yardeni Research
Summary
Ed Yardeni discusses his concept of FEMO (fabulous earnings momentum) driving the market higher, argues that the forward P/E is justified by strong earnings and a resilient economy, and warns that dip-buying opportunities are rare. He reiterates his bullish view on the S&P 500, targeting 10,000 by the end of the decade.
- Yardeni introduces FEMO (fabulous earnings momentum) as a fundamental driver.
- He says earnings are accelerating and supporting higher stock prices.
- He dismisses concerns about overvaluation, citing stable forward P/E.
- He warns that dip-buying opportunities are limited this year.
- He reiterates his 'roaring twenties' scenario with S&P 500 reaching 10,000.
- He downplays technical overextension as a near-term risk.
Trade Ideas
Earnings momentum drives market higher.
Ed Yardeni believes the market is driven by fabulous earnings momentum (FEMO), with earnings continuing to rise at a faster pace. The forward P/E of 20-22 is justified given a resilient economy with no recession expected. He expects the S&P 500 to continue moving higher, reaching 10,000 by the end of the decade, and cautions that dip-buying opportunities are rare, implying investors should not wait for a correction.
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This Bloomberg Markets video, published May 27, 2026, features Ed Yardeni discussing SPY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Ed Yardeni · Tickers: SPY