The Bullish Case for Higher Inflation and Interest Rates

Yankee legend Yogi Berra famously said, “It’s deja vu all over again,” one of his many memorable expressions. That’s the way I feel this week.
The “deja vu all over again” is the theme of “Don’t fight the Fed.” The Federal Reserve's recent pivot from inflation promoter to inflation fighter puts that adage front and center in the current debate between the bulls and the bears.
This week’s guest has been following that dictum during his 40-year investment career. He has been bullish since the Fed opened the monetary spigots in 2009. He is Ed Yardeni, a Ph.D. economist, long-time Fed watcher, and investment strategist who is widely followed by institutional investors.
He is also the author of several books. The latest, In Praise of Profits! is dedicated to progressives to help them understand that “profits isn’t a four-letter word.”
Another Yardeni book is Fed Watching for Fun and Profit: a Primer for Investors, which we discussed in-depth in an earlier interview. In that book, he wrote: “To do this job well, I've learned that nothing is more important than to anticipate the actions of the Federal Reserve system’s Federal Open Market Committee (FOMC) which sets the course for monetary policy in the United States.”
Given the Fed’s change of policy from easing to tightening I asked Yardeni if he was becoming less bullish.
00:00 Hello
00:36 Introduction
02:29 Interview with Ed Yardeni
23:21 One Investment
24:10 Action Point
WEALTHTRACK Episode #1833 broadcast on February 11, 2022
More Info:wealthtrack.com/despite-highe...
Bookshelf:
Fed Watching for Fun & Profit: A Primer for Investors
amzn.to/3BhlQ9i
In Praise of Profits!
amzn.to/3uKvDng
Martin Zweig’s Winning on Wall Street
amzn.to/3uJJvOr
#bullmarket #interestrates #inflation

[@apga1998]

Best wishes Dr Ed! This is a man with clear vision. Excellent track record over many decades. He's not always right but he's always close.

[@py8130]

Good to know this! Thank you for this insight. Hope he is right and Grantham is wrong. :)

[@joannemeeks745]

The real value of these interviews is to listen to them again after a month...3 months. They are on the money 💰!!!!

[@mh01769]

Please invite this guy in a few months...

[@1linkbelt]

That would be an interesting interview!

[@43Danc]

Thank you for the balanced view. Without the drama. 👍

[@grahamsampson769]

Ed's opinions appear very similar to Tom Lee of Fundstrat.

[@Ambassador055]

Must have been Prerecorded.

[@christopherdennis4280]

what will autonomous vehicles do?

[@notroll1279]

Drive??

[@contrariankairos9845]

I especially like his answer on US debt. Summarizing: "Aren´t you worried on th level of US debt public and private? No. Why? Because it is worse elsewhere!" Great answer! I feel better now...

[@blanket1309]

The global recession and global pandemic will tell you we can go down as others do

[@notroll1279]

As long as it's worse elsewhere, at least the dollar will remain strong outside. I'm German and our ECB keeps printing money happily and is less courageous in raising interest rates. So I bought PRU and UNM, set to benefit from rising interest AND, from my point of view, a rising USD.

[@contrariankairos9845]

@@notroll1279 If I were you I would be worried for the Euro and the Dollar in the medium/long term. Short term, you are probably right, especially if Grantham is right!

[@contrariankairos9845]

@@blanket1309 you know, I was sarcastic...

[@CAPTAINACTION7]

America crossed $30 TRILLION IN DEBT and first country in history to do so

[@johnkerner6553]

Thanks for providing information versus selling drama or news.

[@christopherdennis4280]

Ed is like geez-Louise enough already with all the headwind

[@scottprice4813]

He’s not close. The national debt was less than 40% of GDP when Volcker had to raise rates to 20% plus to beat inflation. Now in just the last four years that debt is up 50% to 130+% of GDP. Like almost everyone else Ed doesn’t seem to understand this inflation is structural . Everything is going to reset painfully .

[@utzberger5876]

Have not heard an interview I could agree more with!! Great performance!! Thank you very much!!

[@rayterrell6442]

I agree that the market is overreacting and we will see a big swing up in the second half of the year when inflation starts to descend. Great show and knowledgeable, reasonable guests.

[@celestialfix]

Ed’s a great guy.

[@winstonw2020]

I just shake my head...

[@joevelte4252]

Yardeni is getting hammered lately. Nearly all of these guys are correct for a period of time and then get hammered. Buffet is one of the only ones that has been consistantly correct for the most part.

[@asegal4677]

The Buffet magic has been gone for years and years.

[@heinzbucksandcastle2053]

Sure Ed, all the news is good...what is good about it?

[@qake2021]

👌👏👏👏👏👏👏👏💪🤞✌🏻

[@qake2021]

👌Where to allocate your investment: USA vs world? 70% domestic and 30% international (10% Europe, 10% Asia Pacific and 10% rest of the world ).

[@spiritofgoldfish]

The rising stock market is a measure of the wealth being sucked out of the real economy for the benefit of the rentier oligarchy.

[@carriecahill2130]

With the amount debt we have, any increase in interest rates is catastrophic. There are a lot of speculators in real estate and the stock market. Good grief. Margin debt is up 42% and close to 24% of real estate is paid with cash due to big funded speculators.

[@carriecahill2130]

Productivity is due to technology ( not more jobs, technology is replacing jobs).

[@rebeccavoodoo2191]

Yardeni is the best on”Wall Street”

[@heinzbucksandcastle2053]

Well, I appreciate the honest comments, you have look at prices and earnings. Who will want to step up and buy real estate, stocks, or commodities at these levels? Answer, nobody!

[@jameswang4802]

A market pullback against a rising economy is buying opportunity. If you look at quarterly chart of Dollar index and attach 20 and 50 period of moving avg, you will see that the economy is on its uptrend and not at the late stage of this trend. Back in the period of 2003~2008, stock market was up against a declining 20 and 50 moving avg on this chart, meaning against a declining economy, stock market crashed in 2008, but this is not the case in the relationship of current stock market with its underlying economy.

[@jimjackson4256]

How will transforming from gasoline powered cars to electric cars help economic growth.An electric car doesn’t have a big engine block or crankshafts or camshafts or ignition systems and mufflers etc not to mention the need for basically zero motor oil in an electric motor.All. those companies making old tech will disappear so how will that help economic growth?

[@PassivePortfolios]

Yardeni is a perma-bull. Aside from Grantham nobody on Wall Street has advised to lower portfolio risk because it is bad for business.

[@klovacka]

Grantham is talking Super Bubble, but says correction to $2500 SNP (being a bit generous) That just does not make sense When a super bubble burst's the minimum retrace is 80%. That would mean SNP 500 well and truly below 1000 I think Grantham is dead wrong as usual, 50% drop just does not make sense to me.

[@asegal4677]

The elevator is on the way down now.

[@bambamkitring6666]

Analyst said that US inflation is a market opportunity to buy crypto during this 1st quarter. I buy more on Ardano, Gala, and GXC..

[@johnrotten968]

All I can say is wow. Typical mm b.s

[@christinemartin63]

Don't see a super-bubble? Sounds super naive or disingenuous 🙄.

[@helloworld0609]

Economists still cannot predict the turning point.

[@eightballjamal]

The Fed is way behind the curve on inflation and it's going to get worse before it gets better. In whatever form/shape "Volker 2.0" happens, it'll be at a time when the markets are least able to digest it. Grantham doesn't have perfect timing but this bubble call will be one final big win under his belt before his retirement.

[@KidFreshie]

SHORT EVERYTHING THIS GUY HAS TOUCHED.

[@py8130]

why

[@KidFreshie]

@@py8130 He's not in touch with reality. Had you listened to me and shorted, you'd be up 20%

[@jrx2662]

remember it's the business man the owners that being's the prices up, it's called greed, go taxes the federal reserve bank! you're make everything back and more! that's what they say on youtube!

[@arunfreak2005]

What is he smoking ?

[@consciousthought9293]

I was thinking the same thing.

[@CAPTAINACTION7]

Counselo and Yardini are paid by 4 stock investment companies for this message of bs

[@victorpatel]

which companies?

[@ggttuuxx]

Yardeni is very knowledgeable about the energy market. But his reasoning for macro allocation make little sense. It's not a good idea to find an expert in one area and expect them to be knowledgeable in all areas. Be careful.

[@CAPTAINACTION7]

Gold is at $1900. Markets are approaching lows of 2 years ago. US Government now has $30 TRILLION in debt - first country in history. This channel is paid for buy stock investors. ADD THAT ALL UP

[@peredavi]

I have ZERO confidence in this guy’s opinion.