jonathan: i believe we could try again with ed yardeni. let's work on what we're are talking about moments ago. ed: my apologies. the fat finger problem i think. i think the story ahead has to be earnings. hard to imagine the valuation would go higher. the s&p 500 has been hovering between 20 and 22 the past year which is incredible when you look at the past. when inflation started going up and there's talk about the fed tightening the pe tended to go down. here it has remained remarkably high. remember in 1999 we got 25 on the pe and that was the peak and then we went down. it is going to be earnings. i am making the bold assumption the pe is going to stay up because of liquidity and earnings should be up 8%. matt: earnings are going to remain strong at what do you think about buybacks and dividends? this is one of three key components. if you know what earnings are going to be, you know what dividend or payouts are going to be and if you know with the market is willing to value those, you can make easy calls. what you expect in terms of p

jonathan: the legend ed yardeni of yardeni research there.inz with matt miller and jonathan ferro. your s&p advancing 0.04 percent. something funky is going on in the bond market. 1.49% on tens. inflation could be at 7% into 2022, and here we are sub 1.50% on the 10 year yield. kailey: so far below where we thought we would be at the end of this year. about 50 basis points lower than many strategists on the street. the one person who called 1.50% is steve major at hsbc, and even that was capitulating from the earlier 1% call coming into the year. so he got something right that pretty much everyone did not. as you have said so many times, you can talk about the economy and whether or not you got this call on inflation rate. that has no bearing on if you call this bond market or equity market right. jonathan: 1.50 present on tens next year as well. i thought steve englander at standard chartered made a good point. maybe it is about financial conditions going forward, that people just don't think the fed can do a whole lot before financial condi

i will ask ed yardeni. no federal government agency has more phds than the federal reserve but they get it wrong all the time. the pig question, will they get it wrong again. the biden administration will hand out money for having kids, covering child care, pre-k. in real life the plan will cause trillion dollars, at least to the deficit. are some things more important than a massive deficit? we'll answer the question and more on "making money." ♪. charles: although the market down today it really has been a remarkable year. a very deceptive year though. the s&p closing at a new record on friday. when that happened only 52% of the names on the s&p were above their 50-day moving average. i bottom to tell you there were far more names at new lows than there were at new highs. natural comparisons to market tops the 2,000 bubble, with the outsized role of technology stocks in this rally. wall street is not getting the memo. you had this morning two major firms pick apple as their top pick, not this year but nex

we started off with ed yardeni. i have been talking to pretty much every guest about it since., gina martin adams saying almost double digit earnings growth in 2022, then that would continue the strength, or you would think that the market strength would continue, especially if we continue to get these kind of valuations. jonathan: what do you make of that? fears of recession during the next three to six months. if so, the rapid growth rates of truly innovative companies should be rewarded handsomely. kailey: i think it is interesting. part of that thread which is quite long, she talks about it being the opposite of y2k, in that the industries that are most dealing with these excesses in inventories are the ones that are going to be disrupted by technology, and therefore you are going to see a flipping of what we saw two decades ago. on the growth versus inflation side, i am not sure anyone is too worried about the risk of recession right now. i guess the question is maybe this is reflected in the flatter yield curve we were talking about, the fears for growth down the line if

you're, like, okay, we're all good christmas rally intact and ed yardeni what they're saying now is aitive development, and to drive stock prices higher, we're not giving up on santa claus ubs best case we expect focus to gradually shift away from omicron into positive growth allowing equities to resume their upward course. let's bring in brian belski in toronto for us today, bmo. are you still as bullish as we were before we found out about omicron? >> we are, judge thanks so much for having us it was fire ready for clients and we've seen that now for the most part for really the past two years, scott and it has to end at some point in terms of this reactive, led by fear type of investing, and so we already started to see some signs of the market transitioning and especially in october, november, and think, we saw the news with respect to the variant which we reacted to and focused on the negative any time the market goes down it's incredibly humbling especially when you're bullish you have to go back and look at what you're saying and why you're saying it, and valuations have actual

in fact, the panic events, these number 71, say 72 according to yardeni research president ed yardeniho i am bringing in right now. ed, i have to tell you i love the list you put together. it is absolutely fantastic. >> thank you. charles: we had 71 panic attacks. i took the liberty of adding jay powell to the list so we have 72. paint by numbers guy. not a intrad economist. everything by the book. powell 2.0 focuses on compassion, societal issues. now we have powell 3.0. who is this powell? >> this is jerome powell, the fed chair who has been a pragmatic pivoter. he pivoted from time to time where looks like he is doing it again where he is more concerned about inflation. at least that is the rhetoric. he might make progress with the rhetoric saying he is joining the hawks we need to taper more quickly so we can raise interest rates sooner. that may work some magic here taking some of the inflationary pressures out of out of the commodity markets for example. the price of oil come down a lot. has to do with the variant. has to do with the perception that the fed is becoming who are h

with omicron being a bullish rather than bearish market development i have a positive thing from ed yardeni, as well he's not ready to give up on the santa claus rally either are you, jason snipe >> obviously, it's been an interesting take this week a lot of volatility and a lot of volume for me, what i do is i'm zooming out and saying, okay, we are pos positioning in it and we're at the end of the year now and looking into 2022. obviously the fed has made their statement and they're going to increase the tapering time line which they have talked about all year especially the last couple of weeks and we'll reassess from a tightening perspective i think when we think about valuation, high valuation names, long duration assets, cash flows way out in the future,typicall those are the names that get hurt in a rising rate environment and those are names that obviously we need to look at, and i haven't abandoned all of them. there are quite a few that i still do hold and i see secular opportunities with, but i think that's something that we need to pay very close attention to going into 2022, but

yardeni research. long ago, high above cayuga's waters, he knew double-digit inflation, and i thought, there we go. ednt to go to the krugman essay last week, where he said simply it was a theory then, it is not now. what should we do with our collective memory of the ghosts of the 1970's, the theories of milton friedman? edward: i think he was right up until the pandemic. we did see a tremendous amount of quantitative easing, zero interest rates. central banks provided a tremendous amount of liquidity, yet there were a forces that kept inflation down. inflation was the law of the land following the great inflation of the 1970's. it was things that globalization, technological innovation, and too much debt. all disinflationary. but the pandemic changed that because it brought about modern monetary theory. we just had this unprecedented increase in government debt, deficits, and all of that was financed by the central banks, to a large extent. tom: from david blanchflower, hanover new hampshire, -- in hanover, new hampshire and his full opposite on inflation guess? where do you stand on that? edward: i