Part 6/7:
He highlights the historical context of valuation averages, suggesting that while current prices for leading stocks seem high compared to historical means, the underlying economic environment might support prolonged market strength. The potential for strong earnings growth could lead to a reduction in stretched valuations without necessitating a significant market correction.
Looking Ahead: The Roaring 2020s?
Yardeni concludes with an optimistic view of the coming years, suggesting that we may witness a prolonged expansion without significant recessionary interruptions. He compares the current economic climate to the "roaring" decades of the 1920s and 1990s, marked by technological revolutions and economic growth.