Party like 1999? The ‘Blue Wave’ should keep everything alive in the bull market ‘, but it can change in a hurry, strategists warn

‘From late 1998 to early 2000 the Nasdaq exceeded 200%. Now, we are almost 100% up, and we may very well be on the same track. Everything I see points to a melt-up. ‘

This is Edward Yardani, president of Yardney Research, who, in a recent CNBC interview, took a cautious stance that the stock market is headed from here. The relentless rally in cryptocurrency, he explained, is one of the signs pointing to potential weakness.

“It’s part of the bull market in everything,” Yardeni explained. “It is very important whether you are in bitcoin BTCUSD or not
Just to stare at the chart, and realize when it’s straightening up – it’s definitely a sign of exaggeration, speculative excess. ”

Yardney, a longtime Wall Street strategist, said that when it could take a turn for the worse, said broad market rally should have legs for a while.

“In the first half of this year, the blue wave will probably continue to intensify,” he said. “We are going to get more government spending. We are going to bring the Federal Reserve a lot of that government’s expenditure through quantitative easing. I think interest rates will be very low. ”

But this may change quickly as the US economy begins to recover from the epidemic. “In the second half of the year,” the warden said, “we could look for some consumer price inflation that would not be good for overvoltage assets.”

Watch the interview:

There is no sign of melting on Sunday night with futures on the Dow Jones Industrial Average YM00.
S&P 500 ES00,
And Tech-Heavy Nasdaq Composite NQ00,
All point to a sluggish start to the week.


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