Ed Yardeni, the longtime market strategist and head of Yardeni Research, warned investors against aggressively buying AI-linked stocks after their sharp run-up.
He has raised his year‑end S&P 500 target three times this year, from 7,700 to 8,250 to 8,400 .
"I wouldn't jump into the AI trade right now," Yardeni said, a line that captures his shift toward caution after a long stretch of bullish calls .
Yardeni has been described as one of the most bullish voices on Wall Street and told MarketWatch he still thinks he has not been bullish enough overall even as he flags near‑term market-structure risks .
His caution lands against a backdrop of an AI-driven equity rally that has moved major indexes and concentrated gains in megacap tech names, a dynamic that has prompted debate over whether the easy gains are already priced in.
At the same time, investors are again discussing currency and inflation risks under what some outlets call the "debasement trade," a theme tied to political and fiscal uncertainty that complicates positioning for both equities and bonds .
