Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li>Former Fed economist <keyword id="13147871" type="UNKNOWN" weightage="60" keywordseo="edward-yardeni" source="Orion">Edward Yardeni</keyword> urged the Fed to go big on rate hikes at the March FOMC meeting.</li><li>"Just do it," he told Bloomberg. "Just get on with it, let's do 50 [basis points], the market's already discounted it."</li></ul>A former Federal Reserve economist says the central bank needs to go big on raising interest rates at next month's meeting of the Federal Open Market Committee. "Just do it," was the advice from former Fed economist Edward Yardeni.He said the market has already priced in a <keyword id="12955126" type="UNKNOWN" weightage="60" keywordseo="rate-hike" source="Orion">rate hike</keyword> in March, especially after Fed Chair <keyword id="11918133" type="UNKNOWN" weightage="60" keywordseo="jerome-powell" source="Orion">Jerome Powell</keyword> in January said the FOMC is "<a href="https://www.businessinsider.com/federal-reserve-hints-raise-interest-rates-inflation-fomc-meeting-january-2022-1">of a mind</a>" to start hiking rates to more effectively fight <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword>. Yardeni didn't just urge the Fed to hike rates, but to initiate a bigger hike than many are expecting. "Just get on with it, let's do 50 [basis points], the market's already discounted it," the veteran strategist told <a href="https://www.bloomberg.com/news/videos/2022-02-10/yardeni-says-fed-should-get-on-with-it-hike-50-bps-video">Bloomberg TV</a> early Thursday. "Look at the two-year Treasury note yield, which tends to be a great year-ahead indicator of what the market anticipates the Fed funds rate will be."The two-year yield inched near 1.35% before rising to almost 1.5% after the inflation data. It was hovering at 1.54% as of 1:40 p.m. ET Thursday. Yardeni, president of <keyword id="13147872" type="UNKNOWN" weightage="60" keywordseo="yardeni-research" source="Orion">Yardeni Research</keyword>, also said so-called bond vigilantes might soon make a "forceful comeback." The economist coined the term in the 1980s, which refers to investors who demand higher yields when inflation picks up."We're going to find out very shortly," he told Bloomberg. "They should be announcing they're done buying securities. That would finally free up the bond vigilantes to express their opinion. They're waking up."The two-day meeting of the FOMC will take place on March 15 and 16. Estimates published after the FOMC's December meeting showed officials are <a href="https://www.businessinsider.com/federal-reserve-tapering-interest-rates-inflation-fomc-december-asset-purchases-2021-12?utm_medium=ingest&amp;utm_source=markets">expecting to hike interest rates three times</a> in 2022 and another three times next year. Some, like Bank of America, see a whopping <a href="https://www.businessinsider.com/how-to-invest-stocks-high-inflation-fed-rate-hikes-bofa-2022-2">11 rate hikes</a> this year and next.The stock market <a href="https://markets.businessinsider.com/news/stocks/stock-market-moves-explained-growth-value-rotation-rates-federal-reserve-2022-1?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets" target="_blank" rel="noopener">has been roiled in early 2022</a> by expectations that the Fed will repeatedly hike rates and start reducing its balance sheet, bringing an end to the central bank's massive support of the US economy through the pandemic. "Persistent inflation shouldn't be bearish for stocks unless and until the Fed is forced to stop it by raising interest rates to levels that cause a recession," Yardeni said in his <a href="https://www.yardeni.com/morning-briefing-2022/">research piece</a> published Thursday. "Stocks provide some protection against inflation since revenues rise along with prices."

Former Fed economist Edward Yardeni tells the central bank to 'just do it' and hike interest rates by 50 basis points

<ul class="summary-list"><li>Edward <keyword id="13877360" type="UNKNOWN" weightage="60" keywordseo="yardeni" source="Orion">Yardeni</keyword> thinks the US could avoid recession while the <keyword id="11898248" type="UNKNOWN" weightage="60" keywordseo="sp-500" source="Orion">S&amp;P 500</keyword> hits a record high in 2023.</li><li>"I don't recall so much stock bearishness in a very long time," he said in the Financial Times.</li></ul>Edward Yardeni is optimistic that the S&amp;P 500 will rebound to new highs next year after entering a correction this year, as the US economy avoids a recession.This comes as the Federal Reserve's aggressive stance on tightening monetary policy to curb inflation has raised worries that it could induce a recession in the process."In my opinion, investors have turned too pessimistic about the outlook for the US economy and stock market. I don't recall so much stock market bearishness in a very long time," <a href="https://www.ft.com/content/12103d3e-c13c-4a70-96e8-441d47f5ce76">the president of Yardeni Research wrote in the Financial Times</a>.The veteran Wall Street bull noted Wall Street analysts have raised corporate earnings forecasts and pointed to a strong US dollar as evidence that investors still see the US as a "haven" despite volatile <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword>. He also noted that US consumers are "in good shape" as a tight labor is pushing people to seek better pay while still enjoying excess savings from Covid-19 stimulus beginning in 2020. For now, the S&amp;P 500 is about 16% off its recent high, well in correction territory. But Yardeni attributed much of the S&amp;P's losses to mega-cap tech <keyword id="11893878" type="UNKNOWN" weightage="60" keywordseo="stocks" source="Orion">stocks</keyword> like Alphabet, Amazon and Apple. Meanwhile, he sees inflation peaking over the summer at 6% to 7% before falling to 3% to 4% next year without a recession. "The bottom line is that I'm in the correction camp for now. I expect to see the S&amp;P 500 in record high territory again next year," Yardeni wrote.

Veteran bull Edward Yardeni sees S&P 500 rebounding to a record high next year with the economy avoiding recession

<ul class="summary-list"><li>Bond vigilantes are back and could target heavily indebted Italy after running rampant in the UK, according to Ed Yardeni. </li><li>"It's an interesting tug of war between the central banks and the bond vigilantes," he told Insider in an interview.</li></ul>Bond vigilantes that wreaked havoc in the UK in recent weeks are already doing damage in the US and could target heavily indebted countries like Italy, according to Yardeni Research president Ed Yardeni. After years of quantitative easing from central banks that suppressed the usual forces in the market, so-called bond vigilantes re-emerged in the UK last month. Yields soared and the pound sterling crashed as Prime Minister Liz Truss' tax cut plan sparked fears of higher inflation and steeper rate hikes to tame prices. The Bank of England was forced to intervene with emergency bond buys and vowed to continue doing so at "whatever scale is necessary." By Monday, Truss scrapped the part of her tax plan that would have cut rates for the country's highest earners."It's an interesting tug of war between the central banks and the bond vigilantes," Yardeni told Insider in an interview.The Bank of England still hasn't done that much in the actual bond market as its jawboning has helped lower yields, he added. For now, central bankers have been able to subdue the vigilantes by announcing that they're going to support the bond market, he said.Yardeni coined the term bond vigilantes in the early 1980s in reference to traders who were concerned the Federal Reserve wouldn't do what was necessary to snuff out inflation at the time. Bond vigilantes sold their holdings in large volumes to drive the yields higher and force the hand of the central bank to embrace a more hawkish stance. After blowing up the UK's bond market last month, the newly resurgent bond vigilantes could next target Italy, which has the second highest debt-to-GDP ratio in the eurozone. Its recently elected right-wing party is raising concerns for investors as to how the government will handle soaring Italian yields. That could bring bond vigilantes back on the hunt."Wall Street is now getting nervous with Italian bonds as concerns grow over what the path will be from the newly elected right-wing coalition," said Edward Moya, senior market analyst at OANDA. "Doubts are elevated that the euroskeptic party will be able to keep funds coming from the EU and that is why spreads are dramatically widening."Yardeni said the European Central Bank may have to follow the Bank of England with its own bond buys "to calm down the bond vigilantes who might very well go after Italy in an energy crisis situation this winter."Meanwhile in the US, "mortgage bond vigilantes are clearly on the loose" and "very much active" in response to the Fed's quantitative tightening, Yardeni said. Mortgage rates are now at their highest level since 2008."We're in a precarious situation right now where the Fed has basically unleashed the bond vigilantes with QT by saying that they're not going to buy Treasury bonds and they're not going to buy mortgage-backed securities," he said. "We've already had a dramatic impact in the United States."

Bond vigilantes are back and 'very much active' in the US after blowing up UK markets, Ed Yardeni says

<ul class="summary-list"><li>In recent weeks, stocks, bonds, and housing have all drawn comparisons with previous episodes in US market history.</li><li>Stocks are reminding some analysts of the late 1980s and 2008, while bond vigilantes are reliving the 1990s.</li></ul>Investors are scouring financial markets for signals that echo previous recessions as the <a href="https://markets.businessinsider.com/news/bonds/treasury-bond-yields-market-selloff-market-crashes-dot-com-bubble-2023-10">massive bond sell-off</a> has raised fears of a downturn.In recent weeks, stocks, bonds, and housing have all drawn comparisons with earlier episodes in US market history.Stocks are reminding some analysts of the late 1980s and 2008, while bond vigilantes are reliving the 1990s. The housing market also looks eerily like the early 1980s. Here is where history is repeating itself:<h3>Stock market</h3>1987 vs. 2023The stock market's resilience has Wall Street glancing back towards the run-up to the market crash on October 19, 1987, famously dubbed "Black Monday."In spite of the blistering rally in bond yields that has triggered a market sell-off, US stocks are still doing relatively well. That recalls the weeks leading up to Black Monday when the Dow dropped 22% in one day, <a href="https://markets.businessinsider.com/news/stocks/stock-market-crash-1987-recession-risk-us-economic-outlook-rates-2023-10">Societe Generale's Albert Edwards said</a>."The equity market's current resilience in the face of rising bond yields reminds me very much of events in 1987, when equity investors' bullishness was eventually squashed," he wrote in a note on Tuesday. "Just like in 1987, any hint of recession now would surely be a devastating blow to equities."2008 vs. 2023Overvalued stocks, bullish posturing, and tightening monetary policy <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-price-target-2008-headwinds-interest-rates-2023-9">reminded JPMorgan's top quant guru about the 2008 crisis</a>. In the couple years leading up to the financial crash, the market had been performing well as bullish investors looked past a housing market beset by subprime mortgages. "Despite the strong early-summer rally, our framework continues to point to challenging macro fundamentals and headwinds for risky assets," Marko Kolanovic said in a note late last month. "History doesn't repeat, but it rhymes with 2008."<h3>Bond yields: 1990s vs 2023</h3>Market veteran Ed Yardeni declared in a Financial Times op-ed Tuesday that <a href="https://www.ft.com/content/d7ff1d2c-3f52-4dc9-87c4-d6c9d8587975" target="_blank" rel="noopener">bond vigilantes are back</a> after previously warning that they are "<a href="https://markets.businessinsider.com/news/bonds/bond-vigilantes-treasury-market-federal-deficits-debt-long-term-yields-2023-8">saddling up</a>" and <a href="https://markets.businessinsider.com/news/bonds/us-debt-bond-market-vigilantes-deficit-government-spending-ed-yardeni-2023-9">could be staging a comeback</a>.He coined the bond vigilantes term in the 1980s, referring to investors selling off Treasuries to protest federal deficits. They came back in the 1990s for the "Great Bond Massacre" when investors dumped Treasurys, causing yields to skyrocket. Now markets are having a flashback."The bond vigilantes' heyday was the Clinton years, from 1993 to 2001," Yardeni wrote in the FT. "Placating them was front and center on the administration's policy agenda. Now they are back."<h3>Housing market: 1980s vs 2023</h3>Mortgage rates, following the spike in bond yields, have also breached multidecade highs, hovering around 7.5%.Such high levels, along with persistent inflation, and pent-up demand from a demographic boom, have combined to make the <a href="https://markets.businessinsider.com/news/stocks/housing-market-outlook-1980s-playbook-mortgage-rates-doubled-homebuyers-demographics-2023-10">housing market look eerily similar to four decades ago</a>, Bank of America said.Back then, baby boomers were entering their prime home-buying years just as mortgage rates had doubled. Similarly, millennials are increasingly entering the housing market today as they mature, with mortgage rates soaring too.If the past is any guide, it suggests home prices are unlikely to rise from here, and could slightly fall, but not as much as they did during the 2008 housing crash, according to Bank of America."We think the 1980s are a better analogy for today's market than the 2008 housing crash," analysts said in a Thursday note.

Here are all the ways market history is repeating itself amid panic over surging bond yields

<ul class="summary-list"><li><keyword id="11137121" type="UNKNOWN" weightage="60" keywordseo="finra-margin-debt">FINRA margin debt</keyword> hit another record in March at $822 billion.</li><li>The figure represents a 71% year-over-year jump in <keyword id="1744281" type="PERSON" weightage="60" keywordseo="Margin-Debt">margin debt</keyword> usage.</li><li>Margin debt is used by investors to buy securities or sell a stock short.</li></ul>Investors are <a href="https://www.businessinsider.com/what-is-margin-trading-how-it-works">trading on margin</a> like never before, despite the risks associated with the practice.According to newly released <a href="https://www.finra.org/investors/learn-to-invest/advanced-investing/margin-statistics">data from FINRA</a>, margin debt rose 71% year-over-year to hit a record $822 billion in March.That's a 1.1% increase over February's previous record high of $813 billion.Margin debt previously spiked to record highs before the dot-com bubble and in 2007 just three months before the 2008 financial crisis.The chart below from <a href="https://www.advisorperspectives.com/dshort/updates/2021/04/19/margin-debt-and-the-market-up-another-1-1-in-march-continues-record-trend">Advisor Perspectives</a> illustrates just how closely margin debt tracks with the S&amp;P 500.<div type="image" title="Advisor Perspectives" height="660" width="910" msid="82187504" hostid="261"></div>When The Wall Street Journal <a href="https://www.wsj.com/articles/investors-double-down-on-stocks-pushing-margin-debt-to-record-11609077600?mod=article_inline">asked</a> James Angel, a Georgetown University finance professor, about the trend of rising margin debt back in December of 2020 the professor said "the stock market is euphoric right now" and that "a lot of people are extrapolating from the recent past.""We've seen this play out before, and it doesn't end well," Angel added.On the other hand, in January, Bank of America <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-record-margin-debt-bullish-sign-bofa-2021-3-1030141618">told its clients</a> that "investors are not over-levered in terms of margin debt as a percentage of the S&amp;P 500 market cap, with room to run when compared to 2007 through 2018 peak levels."Since January, margin debt has risen another 3%, but the pace of increase isn't as fast as it was in 2020.Still, a number of experts have warned about the use of excessive margin debt, including Edward Yardeni, the president of the consulting firm Yardeni Research.Yardeni <a href="https://www.wsj.com/articles/investors-big-and-small-are-driving-stock-gains-with-borrowed-money-11617799940">told</a> the Wall Street Journal that margin debt "fuels bull <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> and it exacerbates bear markets and to a certain extent you put it on the list of irrational exuberance.""The further that this stock market goes, the higher that margin debt will go, and when something blows up that will be one of the factors for why <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> are going down," Yardeni added. Michael Burry also <a href="https://markets.businessinsider.com/news/stocks/big-short-michael-burry-warns-stock-market-huge-risk-crashing-2021-2-1030106969">warned</a> about record levels of margin debt in the financial system back in February before taking down his Twitter account."Speculative stock #bubbles ultimately see the gamblers take on too much debt," the investor <a href="https://twitter.com/michaeljburry/status/1363383141168128004" target="_blank" rel="noopener">tweeted</a> along with a chart showing the S&amp;P 500 and levels of margin debt both soaring in recent months.

Margin debt hit another record high in March to top $822 billion, according to FINRA data

<ul class="summary-list"><li><keyword id="11895527" type="UNKNOWN" weightage="60" keywordseo="us-stocks" source="Orion">US stocks</keyword> plunged Monday, with the S&amp;P 500 dipping below 4,000 for the first time since April 2021. </li><li>The tech-heavy Nasdaq dipped more than 4%, and the <keyword id="11895235" type="UNKNOWN" weightage="60" keywordseo="stock-market" source="Orion">stock market</keyword>'s "fear gauge" jumped.</li></ul>The brutal market sell-off continued Monday, with each of the three major indexes ending lower to begin the week. The S&amp;P 500 sunk below 4,000 for the first time since April 2021 and the tech-heavy Nasdaq lost more than 4%.The Cboe Volatility Index, the so-called fear gauge of the stock market, surged to 34.66 Monday. The sell-off in stocks came even as the yield on the 10-year Treasury note edged lower to about 3.04%, down from Friday's 3.1%, as investors look to escape the carnage in equities. So far in 2022, there's been <a href="https://markets.businessinsider.com/news/stocks/stocks-bonds-crypto-market-crushed-nowhere-to-hide-rates-inflation-2022-5">nowhere to hide</a> in <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword> as stocks, <keyword id="35147" type="UNKNOWN" weightage="60" keywordseo="bonds" source="Orion">bonds</keyword>, and <keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">crypto</keyword> have all been getting crushed, and stocks and bonds are in a<a href="https://markets.businessinsider.com/news/stocks/stocks-bonds-correction-first-time-50-years-outlook-interest-rate-2022-5"> simultaneous correction</a> for the first time in over 50 years. "In my opinion, investors have turned too pessimistic about the outlook for the US economy and stock market," veteran stock market bull Edward Yardeni told the Financial Times Monday. "I don't recall so much <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-record-high-recession-2023-ed-yardeni-2022-5">stock bearishness</a> in a very long time." Here's where US indexes stood as the market closed 4:00 p.m. on Monday: <ul><li><a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 3,991.36, down 3.2% </li></ul><ul><li><a href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 32,245.57, down 1.99% (653.80 points)</li></ul><ul><li><a href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq Composite</a>: 11,623.25, down 4.29% </li></ul>Morgan Stanley analysts said in a Monday note that retail traders have now <a href="https://markets.businessinsider.com/news/stocks/retail-traders-market-sell-off-tech-meme-stocks-morgan-stanley-2022-5">lost all the money they gained</a> during the pandemic.<a href="https://markets.businessinsider.com/stocks/twtr-stock">Twitter</a> stock fell in Monday's session. Short seller Hindenburg Research published a report saying the company's implied price would be 37% lower in the absence of Elon Musk's takeover bid. The Tesla chief, the analysts wrote, <a href="https://markets.businessinsider.com/news/stocks/twitter-stock-price-elon-musk-deal-short-seller-hindenburg-research-2022-5">holds all the leverage in the deal,</a> and it is possible he reprices his bid. On Wall Street, <a href="https://markets.businessinsider.com/news/stocks/goldman-sachs-spac-work-deals-liability-concerns-investing-markets-bank-2022-5">Goldman Sachs is set to stop doing work with most SPACs</a> due to liability concerns amid tighter regulation in the space, Bloomberg reported. But the investment bank may change course if the SEC scales back its SPAC oversight guidelines. In commodities, lumber prices fell to their <a href="https://markets.businessinsider.com/news/commodities/lumber-prices-today-lowest-level-high-mortgage-rates-housing-demand-2022-5">lowest level of the year Monday</a>, as the highest mortgage rates in 13 years dent housing demand. Overseas, China's yuan hit an <a href="https://markets.businessinsider.com/news/currencies/dollar-vs-yuan-chinese-currency-18-month-low-covid-lockdowns-2022-5">18-month low against the dollar</a>, with Beijing's Covid lockdowns dragging down the economy and as US bond <keyword id="13878361" type="UNKNOWN" weightage="60" keywordseo="yields" source="Orion">yields</keyword> remain elevated. Meanwhile, the three biggest cryptocurrencies by market cap — bitcoin, ether, and solana — all tumbled Monday. Shares of <a href="https://markets.businessinsider.com/news/stocks/crypto-stocks-coinbase-silvergate-riot-blockchain-broad-token-altcoin-selloff-2022-5">Coinbase and Silvergate Capital</a> tanked with the broader token <keyword id="12616641" type="UNKNOWN" weightage="60" keywordseo="selloff" source="Orion">selloff</keyword>.Oil moved lower, with <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti">West Texas Intermediate</a> down 6.7% to $102.39 a barrel. <a href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, moved down 6.4% to $105.20 a barrel. <a href="https://markets.businessinsider.com/commodities/gold-price?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Gold</a> edged lower 1.53% to 1,853.20 per ounce. The <a href="https://markets.businessinsider.com/rates/u-s--rates-10-years?utm_medium=ingest&amp;utm_source=markets">10-year yield</a> dipped 8.4 basis points to 3.04%.<a href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets">Bitcoin</a> plunged 11.64% to $30.569.95.

You Searched For "edward yardeni" and got 6 results

Former Fed economist Edward Yardeni tells the central bank to 'just do it' and hike interest rates by 50 basis points

Isabelle Lee

Veteran bull Edward Yardeni sees S&P 500 rebounding to a record high next year with the economy avoiding recession

Brian Evans

Bond vigilantes are back and 'very much active' in the US after blowing up UK markets, Ed Yardeni says

Brian Evans

Here are all the ways market history is repeating itself amid panic over surging bond yields

Aruni Soni

Margin debt hit another record high in March to top $822 billion, according to FINRA data

Will Daniel

US stock sell-off deepens as the S&P 500 dips below 4,000 for the first time in a year and the Nasdaq falls over 4%

Phil Rosen

Popular Keywords

Buying Guides