Markets started the week higher on positive economic data. So will stocks continue to rise from here? Edward Yardeni, president of Yardeni Research, shared his market insights.
“We’ve got a V-shaped recovery in earnings,” Yardeni told CNBC. “What matters for those of us who care about stocks is 'P/E times E'—and E is recovering very nicely.”
While some analysts are concerned that earnings improvements are largely due to cost cutting, Yardeni said revenues are coming back.
“The global emphasis is important, but you don’t have to go overseas,” he said. “The S&P 500 companies are doing it for us.”
(Counterpoint: Strategist Mike Holland says, “It’s time to be investing abroad.” )
In the meantime, Yardeni said there is a “good chance” that the Federal Reserve fund rates will still be at zero in six to 12 months.
“It’s not great for the U.S. but it suggests that there will be plenty of liquidity to drive stocks higher,” he said.
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No immediate information was available for Holland or Yardeni.