Bloomberg Talks Edward Yardeni, President at Yardeni Research, Talks Earnings
May 12, 2026
Edward Yardeni, president of Yardeni Research and market-focused economist, offers concise market and earnings analysis. He explains why strong earnings can sustain a bull market despite worries. He highlights improving earnings breadth beyond mega-caps and suggests rotation opportunities into mid- and small-caps and financials. He contrasts real-time analysis with rigid quant models.
AI Snips
Chapters
Transcript
Episode notes
Bull Market Fueled By A Wall Of Worry
- The market is climbing a wall of worry where persistent concerns actually fuel a healthy bull market.
- Edward Yardeni notes bearishness and worries (Middle East, bond yields, K-shaped economy) coexist with strong earnings thrusting the market higher.
Earnings Breadth Is Broadening Beyond Mega Caps
- Earnings breadth for the S&P 500 is improving and small/mid caps are waking up after being dormant since 2022.
- Yardeni highlights record-high earnings outlooks for mid caps and a pickup in small/mid cap earnings over the past six months.
Rotate Into Financials And Mid Caps
- Diversify exposure beyond the Magnificent Seven into sectors like financials and mid caps that may participate in the rally.
- Yardeni points to improving private credit signs and stronger capital spending as reasons financials could outperform.