Ed Yardeni
Ed Yardeni
people serious
These people could be in some serious trouble.
depressing ease economic fed federal folks funds high next plenty raise rate room seriously short sure time
I think the folks at the Fed would like to raise the federal funds rate as high as they can short of seriously depressing economic growth. They want to make sure they have plenty of room to ease next time they have to do so.
bigger bubble coming financing innovative lending mortgage places rather sorts telling
The bigger bubble is actually in the financing of homes. Mortgage lenders have loosened their lending standards. Rather than telling a lot of would-be buyers, particularly in places like California, that they don't qualify, they're coming up with all sorts of so-called innovative alternative financing.
bigger bubble financing
The bigger bubble is actually in the financing of homes.
beauty believed believes eye model nobody percent stocks
Nobody believed in the model when it said that stocks were 60 percent overvalued and nobody believes in it now. Valuation is like beauty -- it's in the eye of the beholder.
again fed raising rates stopped
The Fed stopped raising rates in 1995 and I think they will do so again in 2006.
again bad followed good percent raising rates simply whenever
The Fed's going to be raising rates because it realizes that good times will be followed by bad times, ... To have a rate of one percent whenever we have bad times again is simply not prudent.
clear concluded fed rates
It's been clear that the Fed concluded rates were too low,
earth life mean planet severe year
There could be a severe recession. That doesn't mean there won't be life on the planet Earth in the year 2000, 2001 and beyond.
assets commodity converted extent financial funds hard
What is really new in the commodity world is the extent to which hard commodities have been converted to financial assets through exchange-traded funds and hedge funds.
earnings grow inflation interest rates remain
Earnings are still going to grow as interest rates and inflation remain low.
below early earnings market predicted rise risen share time
Early in 2004, I predicted that energy's share of the S&P 500's market capitalization would rise from just below 6% at that time to 15% before the end of the decade. In January, its market-cap share was up to 12.1%, while its share of earnings had risen to 9.1% from 6.0% in early 2004.
beginning earnings recover
Earnings will recover and valuation multiples, which got crushed, will get back to where they were at the beginning of the year,
blame costs depress earnings energy eventually fear higher investors performance price problem suspects usual
After rounding up all the usual bearish suspects to blame for the market's disappointing performance this year, I've narrowed the problem to the price of oil. Investors fear that higher energy costs must eventually depress earnings growth.