00:00Why is Yardeni here? Let me go to the chart right now. Pull up an important chart here.
00:05Coming out of COVID, in October of 22, a guy named Ancampur in the chart area and Yardeni
00:12in the economics and finance said, courage, buy here. What did you see in October 22 that gives
00:20you continued confidence in the market? Well, October 22 was a very strange bear market. Usually
00:27bear markets are associated with recessions. There was no recession. As a matter of fact,
00:32at the time, I kept saying that we are experiencing the most widely anticipated recession of all times
00:38that just isn't going to happen. It was the Godot recession, if you will. I just kept betting on
00:44the resilience of the economy. And so I kind of viewed the bear market as the aberration rather
00:48than the economy, which remained very strong. The earnings were holding up reasonably well.
00:54So I kind of viewed that as a panic attack. Now, look, there were good reasons for concerns.
00:59The Fed was raising interest rates from zero to 5.5 percent of the Fed funds rate. The bond
01:05yield was going up. Oil prices got a big spike. And yet the resilience of the economy came through
01:11remarkably well. We were betting on that and we're still betting on the resilience of the economy.
01:16Yeah. So I want to take it to what we are seeing right now, because you said bond yields were
01:20going
01:20up. Oil prices are going up. That's exactly what's happening now.
01:22The stock market has kind of slowed down a little bit. So the parallels between then and now,
01:28one could say, is noteworthy. Well, there's definitely parallels. But one of the big differences
01:34is earnings. We've got what I call, you know, everybody talks about FOMO, fear of missing out.
01:40I'm talking about FEMO, and that is fabulous earnings momentum. We didn't have that back in
01:452022. And it was really at the end of 2022 November that we suddenly had ChatGPT and AI revolution
01:55just starting.
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