WEALTHTRACK Bullish Economist Ed Yardeni Turns Cautious as Trump Tariffs Upend Markets
7 snips
Mar 20, 2025 
In this engaging conversation, economist Ed Yardeni, President and Chief Investment Strategist at Yardeni Research, shifts from being bullish to cautious due to Trump's tariffs disrupting financial markets. He discusses the historical parallels to the 1920s, evaluates consumer resilience and the stock market's 'fake economy' status, and shares insights on the S&P 500 and gold investments spurred by geopolitical tensions. Yardeni emphasizes the importance of independent investment strategies amidst market volatility, drawing on famous investor psychology.
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Trump Trade 2.0 Sentiment Shift
- Ed Yardeni initially held a bullish outlook on the "Trump Trade 2.0", expecting positive market outcomes.
- However, the focus on tariffs and federal payroll cuts has shifted his perspective to cautious.
Long-Term Optimism
- Despite current market turmoil, Yardeni maintains optimism for the "Roaring 2020s" due to strong economic fundamentals and technological innovation.
- He believes in the US economy's resilience, emphasizing its ability to perform well despite political challenges.
Shifting Perspective on Tariffs
- Yardeni initially viewed Trump's tariff threats as negotiation tactics, similar to his approach with Mexico and Canada.
- However, Trump's belief in tariffs as revenue generators and incentives for US manufacturing has changed Yardeni's perception.
