Ed Yardeni slashes S&P 500 target, says ‘proceed with caution’ in stocks as rates rise
The sharp rise in bond yields is making even the biggest market bulls nervous. Ed Yardeni is no exception.
TL;DR
- Ed Yardeni has lowered his year-end S&P 500 target from 8,400 to 7,900.
- The decision is driven by rising Treasury yields and energy prices, which have increased the risk of a market downturn.
- The 10-year Treasury note yield reached 5.041%, a level not seen since 2007.
- Oil prices have risen over 20% in the past month, with both Brent and U.S. crude trading above $100 per barrel.
- Investors expect a quarter-point rate hike from the Federal Reserve, with a 93% chance according to the CME Group's FedWatch tool.
- Yardeni remains bullish on stocks for the long term, maintaining an end-of-decade target of 10,000 for the S&P 500.
- He advises investors to 'proceed with caution' in the current market environment.