Program and guest
Bloomberg Television interview with Ed Yardeni, president of Yardeni Research. Original English title: Ed Yardeni Is Sticking to his Year-End Call of 7,900 for the S&P 500.
Key points
- AI is a real trend, and the cooldown is a good thing: AI previously arrived too forcefully and too quickly, so the current slowdown is welcome. Bond-market “vigilantes” are allocating credit rationally and imposing credit discipline 0:22
- Earnings expectations have not been lowered: analysts’ consensus expectations were essentially flat last week, and they remain very optimistic about 2027 and 2028, with expected earnings per share of 500 dollars for 2028 1:29
- The market is imposing discipline on the AI boom: emerging cloud providers previously borrowed indiscriminately; borrowing will now be more expensive and more regulated. OpenAI is raising less than the market was willing to provide. These are all good things 2:50
- A blue wave in the midterm elections could throw “cold water” on the market: deeper partisan divisions would make future government debt crises and shutdowns last longer and have a greater impact 5:15
- The “Santa Claus rally” is in earnings: although news from Washington is mostly discouraging, practical people can still keep the US stock market and economy doing well. That is the basis for his bullish outlook 5:51
Background and notes
Subtitle coverage: The video has 90 timestamped subtitle segments covering 0:00–7:11 (full length: 7:11). This article presents all the key points from the full 7:11 interview. Views and timestamps are based on the original subtitles; each timestamp marks the start of the segment containing the relevant remarks.