Meet the man who called the market bottom a week before the ceasefire

In a report last Tuesday, Yardeni Research, a sell-side consulting firm in New York run by a Wall Street veteran, said the S&P 500 may have bottomed out, days before US President Donald Trump called for a ceasefire in Iran, triggering a sharp rally in equity markets worldwide.  

Members of the CNBC-TV18 Access community may have seen the report on Yardeni's prophetic call earlier. Here's how you can become a member now and stay ahead of the market with the priceless insights. 

“I concluded that we probably would see a deal done. And here it is,” Yardeni told CNBC-TV18 on Wednesday.

So, where does he think markets are headed from hereon? "I think we can go back to where the markets were before the war.... to overweight the overseas markets and be less exposed to the US market, simply because the US market had become 65% of the market capitalisation (MSCI). 

Yardeni sticks to his call that gold prices may hit $6,000 an ounce by the end of the year. "I was surprised, like everybody else was, that you would think with the war, the price of gold would go up; instead, it went down. Apparently, the central bank of Turkey sold a lot of gold in an effort to defend its currency when the war broke out. And now we can see that, once again, the gold is acting differently than you would think with the ceasefire. Gold is actually up a lot," he explained. 

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