The head of Yardeni Research believes that recent geopolitical tensions are unlikely to derail the stock market.
In a new interview with CNBC, Ed Yardeni He says The market had already reached its final bottom and he expressed confidence that upcoming earnings would strengthen the economy.
“The March 30 low is still the reason for this pullback. It was not even a correction for the Nasdaq but not for the S&P 500. But you know earnings season is coming here. And I think it will confirm that the earnings story is remarkably resilient.”
Markets have historically proven their ability to withstand geopolitical shocks, often turning periods of heightened uncertainty into opportunities for investors, Yardeni says.
“Well, I think we have some experience, even recent experience, with this type of event. Geopolitical crises tend to be buying opportunities. And we saw that last year when we had the whole tariff issue, we had a bear market in 2022. No, there was no recession, but it only lasted nine months and it turned out to be a great buying opportunity.”
Additionally, Yardeni says the U.S. economy and U.S. financial markets have shown remarkable resilience despite recent weak data and escalating tensions in the Middle East, including concerns surrounding potential disruptions to Iranian ports and global energy supplies.
The relatively muted market reaction to these developments is believed to underscore investors’ confidence that such geopolitical events are unlikely to cause lasting economic damage.
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