that Federal Reserve Chair Jerome Powell's speech during the virtual Fed meeting scheduled for Thursday will"very important."
The economist said he expects continued dovish remarks from the Fed, which means the Fed will be less worried about inflation. This dovishness is why the stock market continues to move higher, said Yardeni. "He'll announce that the Fed now wants to target average inflation, which means that it's been running below 2%, which has been their ceiling target. And they haven't been able to get it to 2%, but now they're saying they wouldn't mind if it's above 2% for a while. Kind of a make-up strategy if you will," Yardeni said. GOLDMAN SACHS: The stocks most loved by hedge funds have smashed the market this year.
Yardeni also acknowledged that there's a"widespread view" that a Democratic sweep in this November's elections might be"bearish for the stock market," but he didn't think that was an urgent concern. "None of those things are going to happen overnight," Yardeni said, referring to a potential increase in regulation, higher wealth taxes, and higher corporate tax rates that may occur under a Democratic-controlled government."We'll have to see how it all plays out," Yardeni said."Politics matters, who the next president [is] will matter, but so does the entire checks and balance system we have in place.
Wall Street is hooked on liquidity...it's a fake market that only the FED owns. Right now, we should be buying bargains instead of an inflated bubble.
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Source: latimes - 🏆 11. / 82 Read more »