[Benjamin]

TRADING NATION (USA):
Virus surge and new China tensions could spark a 20% to 30% market meltdown, long-time bull Ed Yardeni warns
PUBLISHED SUN, JUL 19 2020
by Stephanie Landsman, https://www.cnbc.com/2020/07/19/melt...eni-warns.html

Long-time market bull Ed Yardeni is getting nervous for the first time since the March 23 rebound.

He warns new risks from the U.S. surge in coronavirus cases to renewed tensions with China could spark a 20% to 30% meltdown.

• Stocks are not cheap
• handling the opening up of our economy and social distancing

“We’re seeing major states reversing the reopenings of their economies. So, all this good news we’ve gotten in May and June on the economic front, including even the unemployment numbers, is vulnerable,” Yardeni noted. “On top of all that we’ve got an increasingly and potentially dangerous conflict between the United States and China escalating again.”

Target less volatile regions with fewer virus cases — particularly China, Japan and Europe.

“Those markets are a heck of a lot cheaper than ours when you look at forward P/Es [price to earnings],” he added. “It may be time to start looking overseas to see if there are better values with solid growth stories.”