There Will Be Another Financial Crisis

Boom/bust cycles, like recessions, are inevitable, says Yardeni

There Will Be Another Financial Crisis
Traders work at the New York Stock Exchange (NYSE) in New York. (Photographer: Scott Eells/Bloomberg)

(Bloomberg Opinion) -- Ed Yardeni reminds investors — and occasionally, himself — that events are either bullish or bearish. Forget the partisan politics and ideology unless you are a preacher or a moral analyst. Investors who focus instead on the duality of markets when putting capital at risk will be rewarded.

Yardeni is the president of Yardeni Research Inc., a provider of independent global investment strategy research. Previously, he was chief investment strategist for Deutsche Bank. He just published “Predicting the Markets: A Professional Autobiography” and is this week’s guest on Masters in Business.

He discusses why the more pessimistic economists tend to miss the technological innovations that profoundly affect society, economies and markets. Those who have a consistent negative viewpoint are fighting the tide of innovation and human ingenuity.

Yardeni also observes that boom/bust cycles, like recessions, are inevitable. He notes that another financial crisis is highly likely to occur in our lifetimes. However, for those who can look past the panic, the next crisis will also present another opportunity to buy equities at a solid discount.

His favorite books are listed here; the transcript of our conversation is published here.

You can stream/download the full conversation, including the podcast extras on iTunesBloombergOvercast, and (happy to announce) Stitcher. Our earlier podcasts can all be found on iTunesStitcherOvercast, and Bloomberg.

Next week, we speak with Libby Cantrell, managing director and the head of public policy for PIMCO.

To contact the editor responsible for this story: Max Berley at

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