“
“Nasdaq grew by more than 200% from the end of 1998 to the beginning of 2000. Now, we have grown by almost 100% and we could be very much on the same path. Everything about me indicates melting.
“
This is Edward Yardeni, president of Yardeni Research, who has a cautious perspective in a recent CNBC interview about the direction of the stock market here. The relentless rally of cryptocurrencies, he explained, is just one of the signals that indicate a potential weakness.
“It’s just part of the bull market in everything,” Yardeni explained. “It is very important whether or not you are in bitcoin BTCUSD,
just look at the chart and see when it goes straight up – it’s definitely a sign of exuberance, of speculative excess ”.
As for a timeline of when it could take a turn for the worse, Yardeni, a longtime Wall Street strategist, said the wider market rally should have a few legs for a while.
“In the first half of this year, the blue wave is likely to continue to rise,” he said. “We will get more government spending. We will have in front of the Federal Reserve a large part of the government’s expenditures through quantitative easing. I think interest rates will remain quite low. ”
But that could change in a hurry as the US economy begins to recover from the pandemic. “In the second half of the year,” Yardeni said, “we may be looking for consumer price inflation that would not be good for overvalued assets.”
Watch the interview:
No signs of melting on Sunday night, with the future on the Dow Jones Industrial Average YM00,
S&P 500 ES00,
and heavy technology Nasdaq Composite NQ00,
all pointing to a slow start to the week.