Investing

We're in a bull market plagued by 'recurring anxiety attacks,' strategist Ed Yardeni says

Key Points
  • There have been 56 "anxiety attacks" since March 2009, Ed Yardeni tells CNBC.
  • "Time heals all wounds," he says.
Finding value at record highs: Ed Yardeni
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Finding value at record highs: Ed Yardeni

The stock market could be characterized as a bull market plagued by "recurring anxiety attacks," strategist Ed Yardeni told CNBC on Friday.

"I've kept a diary of these things since March 2009. There've been 56 anxiety attacks. Some were just outright corrections of 10 to 20 percent and some were mini corrections," the Yardeni Research president said on "Halftime Report."

"I include Brexit as a mini panic attack. It only lasted two days. I started to detect after we didn't go over the fiscal cliff in 2013 that my clients were starting to get anxiety fatigue," he said. "They were just tired of being scared that we were going to fall into 2008 all over again and the Fed wouldn't have any tools. Time heals all wounds."

Yardeni spoke as U.S. stocks were trading mostly higher on Friday as investors shook off an unexpected poor show of Prime Minister Theresa May's party in the U.K. general election and former FBI James Comey's testimony, which some saw as lacking a "smoking gun."

The Dow was up about 80 points in the early afternoon, while the S&P 500 was up slightly. The Nasdaq composite hit a record high at the open before trading lower. The CBOE volatility index dropped to its lowest since Dec. 27, 1993.

Yardeni said the market recently has been a reasonably democratic place, where certain groups do well for a few months and then another category rises in the ranks.

"Staying fully invested for now makes sense," he said. "It could be a melt-up scenario and then watch out for a meltdown."

On the Federal Reserve, he predicts policymakers will only "screw up" if inflation makes a surprising comeback. He said inflation is "dead." Fed policymakers meet Tuesday and Wednesday.