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Ed Yardeni Sees Opportunity In Tech, Not A Bubble

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Ed Yardeni Sees Opportunity In Tech, Not A Bubble

Ed Yardeni appeared on CNBC’s “Fast Money Halftime Report” Friday and said he welcomes the price action in the market — and doesn’t believe technology is a bubble.

The correction starting on Sept. 3 could end Nov. 3 if we know who the president is by the end of the evening or a few days after, the pro investor said. said. 

"I think some of this started out as an overvaluation correction, but a lot of it was also election jitters and the virus wave picked up." 

The market is going to go up no matter who wins the presidency, he said. 

The market is starting to think that if Biden wins, he’ll raise taxes, Yardeni said, adding that Biden could increase spending as well, so it shouldn't be bad for the market.

“The real issue now for the market is how will Trump or Biden respond to a pickup in the virus pandemic, depending on what the experts say.”  

Yardeni was asked about tech being the problem in the market and not the election.

Some investors see tech as a bursting bubble. Big names such as Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Facebook (NASDAQ: FB) have seen a drastic increase in price during the pandemic.

No matter what happens next week, Yardeni said interest rates will still be near zero. 

"I view this more as an opportunity than a reason to panic. I don't agree that this is a bubble. Technology has a great future over the rest of the decade." 

 

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