Long-time market bull Edward Yardeni is concerned stocks are getting too expensive.
If the S&P 500 forward earnings multiple ticks to 19 or 20, the Yardeni Research president warns a it could spark a “nasty correction.” Right now, the index is at 17. The historic norm is 15 to 16.
“I just don’t want too much of a good thing here. I’d like this bull market to continue at a leisurely pace not in a melt-up fashion,” he told CNBC’s “Trading Nation” on Friday. “That’s actually the risk.”
Yardeni, who spent decades on Wall Street running investment strategy for firms such as Prudential and Deutsche Bank, expected 2019 to be a winning year — even as stocks were plunging last December.