Program and guest
A Bloomberg Television interview with Ed Yardeni, president of Yardeni Research. English original title: Yardeni: Yields Attractive at 5%; Nasdaq to Outperform.
Key takeaways
- The 10-year Treasury yield at 5% is “very attractive” and within the normal range, with a reasonable range of 4%–5% 4:23; it has fallen about 70 basis points from its peak 5:10
- Under the Fed stock valuation model, a 10-year yield of 5% implies a forward P/E of about 20x, compared with only about 18.5x now, making stocks look cheap relative to bonds 7:20
- The bond market matters more than the Fed now, especially under Warsh 8:14
- Two-year Treasury pricing implies two more rate hikes of 25 basis points each; there could be another in December 8:30
- Foreign investors net bought about 800 billion dollars of US stocks in the first 10 months of this year, a record, while fixed-income purchases were also close to 1 trillion dollars 16:55
- The single best asset to own over the next 24 months is the Nasdaq 100 17:38
Background and notes
Subtitle coverage note: The video subtitles contain 202 timestamped segments, covering the full video from 0:00 to 18:18. The views and timestamps in this article are relayed from the original subtitles; each timestamp marks the start of the corresponding spoken segment.