Bloomberg Talks President & Founder at Yardeni Research Ed Yardeni Talks Potential Market Breakdown
Mar 10, 2026
Ed Yardeni, president and founder of Yardeni Research and veteran investment strategist, offers a brisk take on rising odds of a US market breakdown. He weighs geopolitical risks around the Strait of Hormuz and how tanker disruptions could ripple through markets. He also discusses tech stock bifurcation and AI competition, credit shocks and liquidity risks, and why earnings and productivity still matter.
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Revised Probabilities For Meltup Versus Meltdown
- Ed Yardeni now favors a lower probability of a market meltup and a higher chance of things going wrong this year.
- He cut meltup odds from 20% to 5% and raised meltdown/recession odds from 20% to 35% after recent events.
AI Turns Tech Titans Into Fierce Competitors
- The tech market is becoming bifurcated as AI turns the Magnificent Seven into fierce competitors.
- Yardeni says the firms now engage in an AI arms race, eroding their prior 'seven kingdoms' separation.
Use Corrections As Buying Opportunities
- Treat corrections and bear markets as buying opportunities rather than reasons to panic.
- Yardeni warns perma-bear attitudes often keep investors out of markets at the top, middle, and bottom.