by the way, we talked to ed yardeni about why profits are up.economy and higher prices from corporate america and better cost controls and, sara, i think you've talked about this, the net profit margins, 12% on the s&p. that's a record. not only are they making more money, they're retaining more on the bottom line relative to the top line. this is why the stock market's at a new high. if that changes, you've got problems. my heavens, this is a tremendous handoff from 2024 into 2025. >> efficiency, they're getting more efficient, they're using a.i. they're doing more with less. and productivity. we've seen some decent productivity growth in the u.s. that helps corporations as well. bob, thank you. bob pa san any. by the way, brian, energy is catching a bid along with materials and health care. this is end of the year bargain hunting type stuff. >> a little bargain hunting. i think to bob's point, as usual, is correct. until the a.i. trade stops making money, why would you put your money anywhere else? it's this momentum -- >> valuations. >> nobod

i want to bring in yardeni research president ed yardeni.d, there's a lot of stuff going on, a lot to talk about, all the issues or potential issues, right? there's a lot of known unknowns out there that people are grappling with. how are you dealing with it? >> well, i think that you should panic if you think we're going to to go into a recession, because recessions cause bear markets. but, charles, as you know, for the past three years we have had the most widely anticipated recession of all times that didn't happen -- [laughter] and so if we couldn't get a recession with the fed raising interest rates, why should we get one now that the fed is inclined to continue to lower interest rates? i think the big concern i have here is we've got a lot of moving parts with trump 2.0, and one of those is tariffs. and we do know that the roaring 1920s ended badly with the smoot holly tariff. we still think we're in the roaring 2020 thes, and we don't think that the tariffs are going to lead to a recession, but it is a concern that we're watching. for

thank you very much to ed yardeni of yard any research and to germany now.crisis is set to deepen today. chancellor 0laf scholz has been speaking in front of the bundestag — germany's parliament — ahead of a no confidence vote. a vote he is expected to lose — forcing an election in the new year. it comes after the collapse of scholz�*s government last month after he sacked his finance minister. they disagreed over how best to handle the stagnation in europe's largest economy as german based economist carsten brzeski explains. this government was struggling to somehow make up its mind. so how can the german economy really be reformed and overhauled in the end? it all comes down to money. so will we go more or less the southern european way that we saw during the euro crisis, that there will be reforms combined with austerity measures, or will we see a new way? that would be reforms combined with higher debt and higher deficits and more investments. and this is how the government broke. and i'm a bit afraid that also, when i look at the platforms right now, wh

joining me here is ed yardeni. you are worried about that a little bit.y is getting pretty bulled up. >> i like to focus on the long run but in the short-term, there are too many bulls. we're seeing a lot of the sentiment indicators suggesting that almost everybody is bullish, that could be bullish. >> for the right reasons, though, right. >> for the right reasons. so i'm wondering whether to be a contrarian this time around is to bet that market keeps going on despite the positive optimism. i think there is a good chance that january will see some selling here. i think a lot of people have accumulated some monster capital gains and i don't think they want to rebalance the portfolios before the year end because of the capital gains taxes so there could be some rebalancing in january. we'll see how powerful the bull market is. if it over comes that, which it might. >> what do you make of the makeup of this sort of most recent leg, that mega cap tech is awake. >> it is still going. >> does it surprise you? >> at this point we were seeing signs of broadening

. >>> plus, taking a cue from ed yardeni. >> quantum chips is what google said they will be delivering. i think there's a little bit more hype than reality there. i don't know it's ready for primetime, but the market certainly loves to hear that kind of stuff. >> why my next guest is echoing that ntiment and offering new ways to play quantum and a.i. we'll be right back. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. there are some feelings you can get with any sportsbook. ohhh! the highs! no, no, no. the no, no, noooos - oooooooo! the oh, oh, ohhhhs! now whatcha wanna do with this? but the feeling that, no matter what, you're taken care of. ohhh, i just earned a hotel suite! hee! you only get that here. at the sportsbook born in vegas, where they know how

present think about that we have a going on why wouldn't you want to be a part of it, let's bring in ed yardeniou been pounding at the table for long time you predicted the roaring 20s is this how you envisioned it, feels like it's playing out even more robust and recommended staying home global since 2010 we've been on the right side of the trade for a long time we get a little bit nervous whether the world where stain is we stay with it and it goes on and it picked up steam of a late, i think it speaks to the fact that the united states came out of the crisis in much better shape than any other country, maybe china came out relatively well but not that well. we also came out of the great financial crisis extremely well. would you put it all together, people are betting on productivity, technology and innovation as being a u.s. centric. taylor: i want to pick up on the point, a lot of folks coming to the realization why fight it we saw a record amount of money flowing into the u.s. equities over the last four weeks when you talk about things that make you anxious is this one of them? >> i don'

ed yardeni asked the question whether there are too many charged up bulls what do you think about that >> i'm going to worry about that when you see the bull/bear numbers, there is a lot of bullish sentiment. i also worry because everyone thinks december is going to be up and then there might be a rest when everyone thinks they know a pattern of the market, that sometimes tricks you up also santa claus rally is certainly more than a 50-50 but nowhere near a slam dunk i mean, there's a lot of uncertainties. listen, we all know and jay powell said so in the interview, you know, with andrew ross sorkin on cnbc, they're not going to react to what tariffs are, what the immigration effect is because they don't know until they have some hard data we don't have hard data. stock investors don't have hard data that all hopefully will be revealed in the first half of next year clarifying a lot of uncertainty and give us information on where to position ourselves. >> so if we don't know and we clearly don't, if you say, well, we're going to get the tax cuts and we're going to get deregulation, but

joining us right now for that is ed yardeni. we've got a big week coming up.ell. are you expecting anything other than the fed to cut 25 basis points? >> well, i wish they wouldn't, but they're not going to listen to me and they will do what they want to do and what they seem to be signaling they want to do 25 basis points. it's been increasingly described as being a hawkish cut, meaning they'll cut 25 basis points and then fed chair jerome powell in his press conference will take -- take back any notion that it's -- there are going to be a lot more cuts right away. i think there could be a signal there will be a pause. >> why do you wish they wouldn't cut? >> well, look, i think the reason they want to cut, they have this perception that the level of the fed funds rate is too restrictive and that just doesn't jive with what the markets are saying. i mean are they looking at -- to they have a screen in their office? they should see the stock market is at all time high, gold is at an all-time high, bitcoin is at an all-time high and the economic data is strong.