Ed Yardeni, President of Yardeni Research, says the market’s rally should continue into year-end regardless of whether the Fed cuts 25 or 50 bps. He expects some initial volatility, but strong earnings remain the true engine of the bull market, with both Q1 and Q2 results beating expectations despite tariffs, political noise, and negative headlines.
Yardeni rejects the weak-dollar narrative, arguing Europe faces war risk, fiscal strains, industrial weakness, and potential credit stress — all supportive of U.S. assets.
On tariffs, he notes the Supreme Court may overturn their legality, but the administration will likely find alternative ways to maintain pressure; markets have already shown they can function through tariff turmoil.
Yardeni is extremely bullish on gold, maintaining a forecast of $4,000 this year and $5,000 in 2025, calling gold “the new Bitcoin.” He views Bitcoin as a geopolitical and generational hedge, appealing to younger investors and serving as an alternative to fiat currencies.
Overall, he believes valuations can stay elevated as long as recession is avoided and earnings remain resilient.
