For example, he compared the coronavirus pandemic to the 1918 Spanish Flu, which killed an approximated 50 million individuals and infected some 500 million around the globe.
” The excellent news is that the bad news throughout the previous precedent was followed by the Roaring 20s,” Yardeni wrote. “So far, the 2020s has actually begun with the pandemic, however there are a lot of years left for the thriving 1920s to become a precedent for the current decade.”
The secret to the next boom, as it remained in the 1920, will be technology-enhanced performance.
” Todays doomsters could be confused by biotechnological innovations that deliver not just a vaccine for COVID-19 but for all coronaviruses, Yardeni stated. “Scientists are investigating an array of techniques to combat COVID-19. Ideally, beyond discovering a remedy or a vaccine, among the beneficial outcomes of all this research will be that scientists find out a lot more ways to fight illnesses in basic and infections in particular.”
Add this to robotics, AI, nanotechnology, blockchain, electric automobiles, quantum computing, etc., and, as Yardeni recommends, we might be looking at a historical transformation, much like the advances in transportation, production, electricity and plumbing that occurred 100 years back.
Whats all of it indicate for the stock market?
Well, as Yardeni informed customers in a note Wednesday, he sees a strong surface to the year for the S&P 500 thanks to historical stimulus and a resistant bullish trend. The purchasing will spill over into 2021, where the S&P might end the year with a double-digit pop, he predicted.
” The 1920s ended with a stock-market meltup followed by a disaster,” he stated. “The 2020s might currently be seeing a meltup, begun on March 23.”
If history does, indeed, rhyme, this rally has great deals of space to run, however investors may wish to mark their calendars for the fall of 2029.
On the other hand, the stock market was mixed in Thursdays trading session, with the Dow Jones Industrial Average
and the S&P 500.
losing some ground as the tech-heavy Nasdaq Composite.
Mark Twain when stated, “History doesnt duplicate itself, but it often rhymes.”
Ed Yardeni, chief financial investment strategist at Yardeni Research, used those words to what, for most observers, needs to seem like a special climate for playing the market these days.
However that is not necessarily the case, according to Yardeni.
” We live in interesting, though not extraordinary, times,” he composed in an article. “The Roaring 1920s could be a precedent for the Roaring 2020s.”