Yardeni Says He Has a Case of 'FEMO'

Summary

Ed Yardeni discusses his continued bullish view on US equities, anchored on the resilience of the US economy and what he calls FEMO—fabulous earnings momentum. He contrasts the current environment with October 2022, when he correctly called a bear market panic without a recession. Yardeni sees the ChatGPT-driven AI revolution as a new earnings tailwind.

• Yardeni remains bullish on the US economy and stock market, citing incredible resilience.
• In October 2022, he viewed the bear market as a panic attack, not a recession signal, and was right.
• Current parallels with rising bond yields and oil exist, but the key difference is strong earnings momentum.
• He coins "FEMO"—fabulous earnings momentum—to describe why today's market is different from 2022.
• The AI revolution, starting with ChatGPT in late 2023, is seen as a new driver of that earnings strength.