- The stock market is in a great place for investors to get involved, Ed Yardeni said.
- Market experts still believe that the stock market is in the midst of a secular bull market that could last until 2030.
- Yardeni predicts the stock price could rise by 50% over the next decade.
According to market veteran Ed Yardeni, the recent drop in stock prices could be a big “buy” signal for investors.
Yardeni Research’s president pointed to the recent decline in stock prices, with the Dow Jones Industrial Average plummeting more than 600 points on Thursday after service and manufacturing data suggested rising inflationary pressures, stoking renewed concerns that interest rates could stay high.
But stocks are still in a long-term upward trend, so the drop could present a new opportunity for investors who have been on the sidelines, Yardeni said.
“My advice to people who are investing in the market is to just keep going,” he told Bloomberg on Thursday. “Overall, I expect the U.S. economy to continue to do well. … I think all the stocks that are being sold today are stocks that will probably recover. This may be a short-term opportunity to jump on what I think is a secular bull market.”
Inflation remains above the Fed’s 2% target, but the economy is generally doing well, with GDP continuing to grow and unemployment at record lows. Consumers are cutting back on spending on goods, but spending on services is increasing, which is supporting the economy, Yardeni noted.
“Overall, I think the economy continues to be surprisingly resilient. While everyone is concluding that interest rates will remain elevated for longer because of what Fed officials are suggesting, I view this as ‘normal for longer.’ We’ve done well at these interest rate levels, and so has the stock market,” Yardeni said.
Yardeni has argued for months that the stock market is still in a secular bull market and could continue to rise for the next decade. He recently predicted that the S&P 500 could rise 50% and the Dow Jones Industrial Average could reach 60,000 by 2030.
