The president of Yardeni Research believes recent geopolitical tensions are unlikely to derail the stock market.
In a new CNBC interview, Ed Yardeni says the market had already established its recent bottom and expressed confidence that upcoming earnings will reinforce the strength of the economy.
“Still the March 30th low I think was it for this pullback. It didn’t even it turned out to be a correction for the Nasdaq but not for the S&P 500. But you know the earnings season is up ahead here. And I think it’s going to confirm that the earnings story is remarkably resilient.”
Yardeni says markets have historically demonstrated an ability to withstand geopolitical shocks, often turning periods of heightened uncertainty into opportunities for investors.
“Well, I think we have some experience, even recent experience with these these kind of events. Geopolitical crises tend to be buying opportunities. And we, we saw that last year when we had the the whole tariff issue, we had a bear market in 2022. No, no recession, but it only lasted nine months and turned out to be a great buying opportunity.”
In addition, Yardeni says the US economy and financial markets have shown notable resilience despite recent weak data and escalating tensions in the Middle East, including concerns surrounding potential disruptions to Iranian ports and global energy supply.
He believes the relatively muted market reaction to these developments underscores investor confidence that such geopolitical events are unlikely to cause lasting economic damage.
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