Yardeni Sees Increased Risk of a Sharp Selloff Due to Iran War

• Yardeni raises the odds of a US market meltdown to 35% for the rest of the year, citing the ongoing Iran conflict.
• He notes that oil shocks historically lead to recessions and bear markets, posing a challenge for the Fed's dual mandate.
• Despite short-term risks, Yardeni maintains a long-term bullish 'roaring 2020s' scenario, viewing market dips as buying opportunities, especially for gold as a diversifier.

Ed Yardeni of Yardeni Research discusses the market implications of the Iran war, raising the probability of a US market meltdown to 35% for the rest of the year. While maintaining a long-term bullish outlook, he warns of potential 10-15% corrections due to geopolitical risks and their impact on oil prices and inflation, complicating the Fed's dual mandate.