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The stock market is in a great place for investors to jump in, says Ed Yardeni.
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The market expert still thinks the shares are in the midst of a long-term bull market that could last until 2030.
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Stocks could soar 50% higher by the end of the decade, Yardeni predicts.
According to market veteran Ed Yardeni, the latest drop in stock prices could be a big buy signal for investors.
The president of Yardeni Research pointed to the latest drop in stock prices, with the Dow Jones plunging more than 600 points on Thursday, after data from the services and manufacturing sectors pointed to more inflationary pressures. That has fueled fears that interest rates will remain high.
But the shares are still in a longer-term uptrend, meaning the pullback could be a new opportunity for investors who have been waiting on the sidelines, Yardeni said.
“My advice to people who have invested in the market is to stay in it,” he told Bloomberg on Thursday. ‘All in all, I somewhat expect the American economy to continue to do well. “I think all the stocks selling today are probably the stocks that will make a comeback, and maybe this is a short-term opportunity to get on board what I think is a long-term bull market.”
While inflation remains above the Fed’s 2% target, the economy is strong overall, with GDP continuing to grow and unemployment at historic lows. Consumers have cut back on spending on goods but are spending more on services, boosting the economy, Yardeni noted.
“Overall, I think we are looking at an economy that remains remarkably resilient. And while everyone is coming to the conclusion that we’ll have longer interest rates because that’s what Fed officials are signaling, I think it’s considered ‘longer normal’… We’ve done just fine at this interest rate level, and so has the stock market.” , Yardeni said.
Yardeni has been arguing for months that stocks are still in a long-term bull market and can rise for the rest of the decade. He recently predicted that the S&P 500 will rise as much as 50% and that the Dow Jones Industrial Average could reach 60,000 by 2030.
Read the original article on Business Insider
