Market bull Ed Yardeni says he ignores geopolitical 'noise', and pays attention to earnings instead

Wall Street veteran Edward Yardeni doesn't expect the uptick in geopolitical concerns will ravage the stock market this year — even though President Donald Trump may not be making it easy to see that right now.

"I've never seen a President that has been this bullish and bearish at the same time," the Yardeni Research President said Friday on CNBC's "Trading Nation."

On one hand, he said the Trump tax cuts have made the U.S. economy stronger. But at the same time, Yardeni pointed out the president's protectionist policies are creating a lot of market anxiety.

"A lot of what's going on is noise," he said. "There is still money to be made in this market."

Based on Yardeni's market forecast: A lot of it.

He has a S&P 500 Index year-end price target of 3100, a surge of about 13 percent from current levels.

"Earnings are just fabulous. I mean we had a dramatic cut in the corporate tax rate at the end of last year," the former New York Federal Reserve economist said. "We should really focus on the signal. And, the strong signal is earnings."

According to Yardeni, cyclical groups will help take the S&P 500 to those levels. He's particularly bullish on the consumer discretionary, industrials, financials and technology sectors.

Plus, he believes the small cap rally will continue to rage.

"Small cap stocks are on fire, at record highs, because they are not as exposed to the global economy in currency and protectionism," Yardeni said.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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