| | | Yardeni sees 'great buying opportunities' after tariff-fueled stock market crash
Apr. 04, 2025 4:55 AM ET
By: Jessica Kuruthukulangara, SA News Editor
President Donald Trump's sweeping tariffs stunned the stock market, with over $2T wiped out from the S&P 500 ( SP500) on Thursday in its worst single-day loss since 2020. But Wall Street veteran Edward Yardeni sees this as an opportunity.
"I think some great buying opportunities are being created here," the founder of Yardeni Research said in a Bloomberg TV interview, as the market "is giving a big thumbs down to this tariff policy."
Yardeni said Trump's willingness to "listen to phenomenal offers" from U.S. trading partners could lead to some concessions from their end. "Hopefully, this whole thing will be behind us within the next 3-6 months. Maybe that's too optimistic."
But "if things are as bad on the tariff front in 3-6 months as they are now, then sure, we'll have a recession," Yardeni said.
But he expects political backlash for the tariff move, as a potential economic slowdown would hurt the Republican Party's chances in next year's midterm elections.
"I'm expecting a slowdown in the second half of the year, but not an outright recession," Yardeni said. "I would say 45% is my number for the risk of stagflation and/or including the possibility of a mild recession."
Yardeni, who coined the terms "Fed model" in the 1990s and "bond vigilante" in the 1980s, maintained his target of 6,000 for the S&P 500 ( SP500).
As for the Magnificent 7, which includes Nvidia ( NVDA), Apple ( AAPL), and Microsoft ( MSFT), Yardeni said: "I think they're still magnificent." |
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