Mother of All Melt-Ups: Rising Stock Market Observations

Remember the discussions about the shape of the economic recovery? Would it be a “V”, a “W”, or maybe even a hockey stick?
The jury might still be out about the economy, but as far as the markets are concerned there is no question. V’s abound.
The top five S&P 500 companies by market capitalization - Apple, Amazon, Microsoft, Google’s parent Alphabet, and Facebook - all but the last topping a trillion in market value, are sharply higher.
It is no surprise to this week’s guest. Ed Yardeni turned bullish nearly to the day of the market turnaround. He and his team are now calling this a Fed-led meltup. They say it could turn into the Mother of All Meltups, what they jokingly refer to as MAMU if it continues. They would feel a lot better about its sustainability if the market had some sort of correction or consolidation. So far it hasn’t complied.
Yardeni is a Ph.D. economist, long time Fed watcher, and investment strategist who is widely followed by institutional investors. He founded his own global investment strategy and asset allocation firm Yardeni Research in 2007, having held top investment positions at several major firms.
He is also the author of a new book, Fed Watching for Fun and Profit: A Primer for Investors, which will be the focus of another WEALTHTRACK.
This week, we’ll discover how bullish he still is and gets his advice for investors.

WEALTHTRACK #1710 broadcast on September 04, 2020

[Ryan_Tinney]

Another excellent episode, thank you.

[TooAjitQuit]

Great Interview Consuelo. I enjoyed Ed's "4D" inflation explanation and the compounding technology revolution comparisons between 1920's and 2020's

[audiophileman]

If the Fed continues printing money at accelerated rates, there will be inflation in the things people need to live just like during The Great Recession. Unfortunately, economic indicator numbers are manipulated to make them look better. They do it with unemployment rates, and they do it with inflation rates. I see short term pain and long term prosperity. We just need to hang on tight for the ride and repeat the mantra of "asset allocation" based on risk tolerance.

[praveenchawla]

Good interview. Looks like we are having the healthy correction, Yardeni was talking about. Healthcare seems to be a good bet. Lots of good value.

[dfrank]

Great interview and point point of view.

[phiphophum]

Same Yardeni from 1990- 91? from Y2K predictions? So now he is saying that he is bullish - that is a good clue.

[saintpeeter]

Great informative interview - I agree with the analysis - generally deflation will persist and when inflation kicks in it will not be accompanied by real economic growth, theredore stagflation will return. What reason would anybody have to downvote this video? C'mon now.

[StephenDoty]

Ed gives reasons to be bullish; while Peter Schiff, reasons to be bearish now... Who wins?

[rof]

In that case, Warren Buffet seems to be thinking that Barrick Gold will outperform 6% per year.

[barkingdogblankets]

Could you address the validity of a provision in the Dodd-frank act regarding banks (too big to fail or over a certain amount of assets) and their ability to seize depositors assets for exchange of said bank stock without depositors permission? Is this a fallacy? Thank you!

[edreeves]

Great content, maybe drop the hair teasing. You are fabulous.

[mrpmj]

Go global? These companies already have 50% of their revenues outside of the US: Apple, Google, Microsoft.

[el.Papi_USA]

It’s a correction. I bought a lot today

[adamr]

I put my bets that USSA will follow Zimbabwe or Venezuela
Good morning Hyper Inflationary depression don’t fight the Fed

[rayterrell]

Well unfortunately Consuelo has reverted back to interrupting the guest trying to show she knows as much as them, at least in her mind.