00:00Ed Yardeni of Yardeni Research writing this year has been all about FIMO fabulous earnings momentum. We are not in
00:07the bubble camp. FOMO is based on hope and hype. FIMO is based on fundamentals. Ed joined us now for
00:13more. Ed let's get into it. Knicks are in the finals. The IPOs are coming. It's got a 99 type
00:19feel for it. Why is it different this time Ed.
00:22Ed Well I think that the big difference is earnings. You know that's the whole concept of FIMO fabulous earnings
00:30momentum is all about the fundamentals have been phenomenal for earnings. We've seen earnings not only continue to go up
00:39but go up at a faster pace and that's what's driving the market up. The forward P.E. has actually
00:45stayed relatively stable of late around 20 to 22.
00:50And I think some people view that as being too high but not if you believe that the economy is
00:55resilient and is not going to have a recession over the next few years.
01:00Ed how stretched are the technicals and does it matter. Well I look I think it does feel a bit
01:09like a melt up even though I believe it's earnings lead melt up.
01:13As long as the earnings turn out to be realistic and there's no reason not to expect that to be
01:20the case then I'm not too worried about the technicals.
01:25I mean some people will say of course that you look at some of these charts like Micron and the
01:29other semis it goes straight up.
01:31And I've been doing it for a while. We've all been all of us who've been doing it for a
01:35while know that when something goes straight up there's a good chance that it goes straight down.
01:40Look we are in a sort of melt up and we could have some correction along the way.
01:46But I think some of that is wishful thinking. I mean you only get so many opportunities to buy in
01:52the dip per year.
01:53Last year we had one. This year we had one in March.
01:57I don't know that we're going to get another one between now and the end of the year.
02:00It's possible. But I think the basic thrust of the market is to go higher.
02:05You know we've been talking about the roaring 2020s and in that scenario we get to 10,000 on the
02:10S&P 500 by the end of the decade.
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