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‘The Nasdaq from late 1998 to early 2000 rose more than 200%. Now, we are up almost 100% and we may well be on the same path. Everything I see points to a meltdown.
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This is Edward Yardeni, president of Yardeni Research, taking a cautious view in a recent interview with CNBC about where the stock market is heading from here. The relentless rally in cryptocurrency, he explained, is just one of the signs that point to a potential weakness.
“It’s just part of the bull market at all,” explained Yardeni. “It is very important whether or not to be in bitcoin BTCUSD,
just look at the graph and see when it is rising – it is certainly a sign of exuberance, of speculative excess. ”
As for the timeline of when this could get worse, Yardeni, a longtime Wall Street strategist, said the broader market recovery should have some legs for some time.
“In the first half of this year, the blue wave is likely to remain bullish,” he said. “We are going to get more government spending. We will have the Federal Reserve covering a large part of government spending through quantitative easing. I think interest rates will remain very low. ”
But that could change quickly, as the US economy begins to recover from the pandemic. “In the second half of the year,” said Yardeni, “we may be looking for some consumer price inflation that would not be good for overvalued assets.”
Watch the interview:
No signs of melting on Sunday night, with the futures at the Dow Jones Industrial Average YM00,
S&P 500 ES00,
and high-tech Nasdaq Composite NQ00,
all pointing to a slow start to the week.