Yardeni Says Stock Bulls Have ‘Narrow Path’ to Victory in 2023

Bulls almost can’t win if economy stays strong, Fed ups rates
But the long-time strategist expects inflation to cool quickly

Ed Yardeni, president at Yardeni Research, says the inversion in the yield curve might not signal a likely recession as it has in the past. “I think this time around it signals falling inflation. It doesn’t necessarily imply that a recession is coming,” he says on “Bloomberg Surveillance.”Source: Bloomberg

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By Vildana Hajric and Lisa Abramowicz

December 29, 2022 at 9:38 AM EST

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Stock market bulls have a “narrow path” to victory next year as long as inflation comes down faster than expected, according to Ed Yardeni, founder of his namesake research firm.

“They almost can’t win,” Yardeni, who is a longtime stock strategist, said on Bloomberg TV and Radio Thursday. “If you get an economy that’s too strong and that belies the idea of a recession, well then the Fed’s going to have to raise interest rates a lot more.”

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