After George Soros, Paul Krugman, ace investor Ed Yardeni warns of looming financial crisis

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Published: May 30, 2018 6:06:47 PM

Yardeni is the president of Yardeni Research Inc., a provider of independent global investment strategy research. Previously, he was chief investment strategist for Deutsche Bank.

He notes that another financial crisis is highly likely to occur in our lifetimes (Image: Reuters)

Ed Yardeni reminds investors — and occasionally, himself — that events are either bullish or bearish. Forget the partisan politics and ideology unless you are a preacher or a moral analyst. Investors who focus instead on the duality of markets when putting capital at risk will be rewarded. Yardeni is the president of Yardeni Research Inc., a provider of independent global investment strategy research. Previously, he was chief investment strategist for Deutsche Bank.

He just published “Predicting the Markets: A Professional Autobiography” and is this week’s guest on Masters in Business. He discusses why the more pessimistic economists tend to miss the technological innovations that profoundly affect society, economies and markets. Those who have a consistent negative viewpoint are fighting the tide of innovation and human ingenuity.

Yardeni also observes that boom/bust cycles, like recessions, are inevitable. He notes that another financial crisis is highly likely to occur in our lifetimes. However, for those who can look past the panic, the next crisis will also present another opportunity to buy equities at a solid discount.

Earlier this month, Nobel Prize-winning economist Paul Krugman had warned of a meltdown in emerging markets. On the same lines, CLSA’s Chris Wood had said that a further sharp rally in the dollar will be a negative for risky assets everywhere with emerging markets likely to take the strain in the first instance.

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