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There’s a growing risk of a stock market melt-up, according to market veteran Ed Yardeni.
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Yardeni said the return of the “Fed Put” means stocks could soar on the anticipation and realization of interest rate cuts.
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But stock market melt-ups are rarely sustainable and are often followed by a painful decline.
There’s a growing risk that the Federal Reserve could spark a stock market melt-up, according to market veteran and investment strategist Ed Yardeni.
The “Fed Put,” or the idea that the Fed will save the stock market with interest rate cuts amid any sign of economic weakness, has returned to markets after Fed Chairman Jerome Powell indicated last month that the next interest rate decision is likely to be a cut, not a hike.
“Investors’ expectation that the Fed would nip a recession in the bud by easing means that the Fed Put is back,” Yardeni told clients in a note on…
