Stockade drive crazy Street veteran Edward Yardeni doesn’t expect the uptick in geopolitical responsibilities will ravage the stock market this year — even although President Donald Trump may not be making it easy to see that right now.
“I’ve not ever seen a President that has been this bullish and bearish at the nonetheless time,” the Yardeni Research President said Friday on CNBC’s “Occupation Nation.”
On one hand, he said the Trump tax cuts have made the U.S. curtness stronger. But at the same time, Yardeni pointed out the president’s protectionist customs are creating a lot of market anxiety.
“A lot of what’s going on is noise,” he said. “There is quiet money to be made in this market.”
Based on Yardeni’s market forewarn: A lot of it.
He has a S&P 500 Index year-end price target of 3100, a surge of thither 13 percent from current levels.
“Earnings are just amazing. I mean we had a dramatic cut in the corporate tax rate at the end of last year,” the former New York Federal Spare economist said. “We should really focus on the signal. And, the strong signal is earnings.”
Be at one to Yardeni, cyclical groups will help take the S&P 500 to those pull downs. He’s particularly bullish on the consumer discretionary, industrials, financials and technology sectors.
Addition, he believes the small cap rally will continue to rage.
“Small cap caches are on fire, at record highs, because they are not as exposed to the global thriftiness in currency and protectionism,” Yardeni said.