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“The Nasdaq from late 1998 to early 2000 grew by over 200%. Now we’re almost 100% up, and we could very well be on the same track. Everything I look at indicates a merger.
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It’s Edward Yardeni, president of Yardeni Research, who takes a cautious view in a recent CNBC interview about where the stock market is heading here. The relentless rally in the cryptocurrency, he explained, is just one sign of potential weakness.
“It’s just part of the bull market in everything,” Yardeni explained. “It is very important whether or not you are in BTCUSD bitcoin,
just look at the chart and realize when it goes straight up – that’s certainly a sign of exuberance, of speculative excess.
As to the timeline of when it could take a worse turn, Yardeni, a longtime Wall Street strategist, said the broader market rally should have legs for a while.
“The first half of this year, the blue wave will likely continue to be bullish,” he said. “We’re going to have more government spending. We will ask the Federal Reserve to pay off much of this government spending through quantitative easing. I think interest rates will stay quite low. ”
But that could change quickly as the U.S. economy begins to recover from the pandemic. “In the second half of the year,” Yardeni said, “we might be on the lookout for consumer price inflation that wouldn’t be good for overvalued assets.”
Watch the interview:
No sign of a merger on Sunday night, with futures contracts on 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.
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