‘Safe Haven’ in US Stocks: Yardeni

The stock market has shrugged off worries about Europe and could continue its rally, Ed Yardeni of Yardeni Research said Thursday.

"I think the market's just concluded we're not going to have a Lehman-style meltdown in Europe," he said, noting that valuation of the S&P 500 is actually to where it was "right before Greece blew up."

On CNBC's "Fast Money," Yardeni said that economic performance in the United States was a positive signal.

"I think the fact that everybody's relaxing on Europe is a really big deal," he said. "Developments in Japan, I guess, could have an impact here in the market short-term, but overall I think U.S. economy matters more."

Yardeni said that the market could see a melt-up in the summer, followed by a "nasty" correction in the fall and a year-end rally. His year-end target for the S&P 500 was 1,665.

"Bond yields are almost too low," he said, adding that valuation multiples "should be much higher."

Yardeni said that the European Central Bank's move to provide stimulus was important, even though "Europe's still a mess."

In the meantime, he added, "I think the U.S. is the safe haven."

"I've got no problems with continuing to have a fully invested position in the market in the U.S," Yardeni said.

Trader disclosure: On May 9, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long TREASURIES; Brian Kelly is long COPPER; Brian Kelly is long US DOLLAR; Brian Kelly is short YEN; Brian Kelly is short GOLD; Brian Kelly is short SILVER; Brian Kelly is short DAX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long FL; Karen Finerman is long FINL; Karen Finerman is short SPY; Karen Finerman is short MDY PUTS; Dan Nathan is long CSCO MAY 21 STRADDLE; Dan Nathan is long BBRY JUNE/JULY 14 PUT SPREAD; Dan Nathan is short XHB ; Dan Nathan is long JNJ MAY 85 PUTS; Dan Nathan is long SPY MAY 10TH WEEKLY 162.5 PUTS.