Ed Yardeni Says Dip-Buying Opportunities in This Market Are Wishful Thinking

Added: 2026-06-01

[00:00:00]Ed Yardeni of Yardeni Research writing, this year has been all about FEMO. Fabulous earnings momentum.

[00:00:06]We are not in the bubble camp. FOMO is based on hope and hype. FEMO is based on fundamentals. Ed joins us now for more. Ed, let's get into it. Knicks are in the finals. The IPOs are coming. It's got a 99 type feel for it. Why is it different this time, Ed?

[00:00:22]Well, I think that the the the big difference is earnings. You know, that's that's the whole concept of a female fabulous earning momentum is all about the fundamentals have been phenomenal for earnings. We've seen earnings not only continue to go up, but go up at a faster pace, and that's what's driving the market up. The the forward PE has actually stayed relatively stable of late around twenty to twenty two. And I think some people view that as being too high, but not if you believe that the economy is resilient and is not gonna have a recession over the next few years.

[00:01:00]And how stretched are the technicals, and does it matter?

[00:01:04]Well, I look. I think the it does feel a bit like a melt up even though I believe it's a earnings led melt up. As long as the earnings turn out to be realistic and there's there's no reason not to expect that to be the case, then I I'm not too worried about the technicals. I mean, some people will say, of course, that you look at some of these charts like Micron and the other semis, it goes straight up. And I've been doing it for a while. We've all been all of us who've been doing it for a while know that when something goes straight up, there's a good chance that it goes straight down. Look. We are in a a in a sort of melt up, and we could have some correction along the way. But I think that some of that is is wishful thinking. I mean, you only get so many opportunities to buy in the dip per year. Last year, we had one. This year, we had one in March. I don't know that we're gonna get another one between now and the end of the year. It's possible. But I think the basic thrust of the market is to go higher. You know, we've been talking about the roaring twenty twenties. And in that scenario, we get to 10,000 on the S and P 500 by the end of the decade. And I