With stocks flirting with record highs, the word “bubble” has made another nervous comeback.
However, veteran strategist and economist Ed Yardeni isn’t buying into the panic. Instead, he dropped three simple words: “buy the dip.”
Despite the constant chatter over overbought tech names, Fed-related fears, and geopolitical noise, Yardeni sees robust earnings and resilient consumer spending keeping this bullish thesis alive.
Yardeni’s curt take feels more like a calm voice that cuts through the noise, suggesting that AI bubble fears and Fed policy could be masking an economy that’s performing better than expected.
Ed Yardeni has seen a fair few market cycles in his career, but his recent takes show that he’s learned to keep his cool while others reach for the panic button.
Currently the president of Yardeni Research, his résumé reads more like a market timeline; he’s also a chief strategist at Deutsche Bank and Prudential and chief economist at EF Hutton and C.J. Lawrence.
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He’s also the man behind coining the phrase “bond vigilantes,” which still echoes through every Fed press conference.
Called major bottoms: Turned bullish at the August 1982 lows and later said he called the December 1987 post–Crash bottom.
Source: Investing.comForecastedDow milestones, years in advance: Predicted the Dow to finish 5,000 by 1993 (hit 1995) and 10,000 by 2000 (hit March 1999).
Early 1990s productivity/tech boom thesis: Argued official data understated a productivity surge, urging over-weighting technology. Additionally, during the post-pandemic rebound, he argued that equities would finish 2020 near record levels, despite the volatility.
In a recent CNBC appearance, Yardeni summed up the stock market investing sentiment with three clipped words: “Buy the dip.”
He told viewers that he saw “too many bulls” in the past few weeks, seeing it as mostly a normal reset, adding, “I think this is kind of a buy-the-dip market, particularly in AI.”
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Surprisingly to most, he feels that the nervousness around AI stocks is actually healthy, recalling that in the late 1990s, “Nobody was really worried about a bubble… not the way it is today.”
To him, a cautious tone indicates balance, not danger. The strategist said AI’s payoff is “in the cloud,” where providers are still making a fortune.
