Edward Edward Yardeni, a longtime bullish on Wall Street, believes that the US economy is on the brink of Nirvana.

Despite the uncertainty about inflation and novel coronavirus mutants, the president of Yardeni Research believes the epidemic is causing US companies to significantly accelerate the adoption of cutting-edge technologies designed to boost productivity.

Yardney believes that this will bring Wall Street into a modern version of the "roaring 1920s."

"you can buy a little of everything," Yardney said in an interview on Friday. Corporate earnings will continue to climb to record highs. "

However, he admits that current prices may be unacceptable and that "nothing is cheap".

Yardney said, "look, everything has been selected." Nothing is cheap. " "it's hard to tell the people here that it's time to get in. Bond yields are so high and will rise further as I expected, it is obviously not attractive. "

But when it comes to stocks, Yardni sees encouraging signs that usually boost the stock market.

"Labor growth has slowed sharply and companies are under tremendous pressure to use technology to offset this impact," he said. This means higher productivity. Therefore, I think I have a very optimistic view of economic activity currently growing at 2%. I think this number will reach 4% in the next few years. "

As a result, Mr Yardney believes that wages are rising faster than prices, while profit margins remain high-the secret to strong corporate profits.

But at the same time, he is also keeping a close eye on the risks of media attention.

"the Delta mutant virus is obviously nightly news, which must be disturbing," Yardney said. "

He is also worried about rising prices. He added that inflation had not yet been shown to be in fact temporary and that "right now, there is no evidence that it has peaked. As a result, people are still worried about these issues. "

While challenges remain, Mr Yardney expects the S & P 500 to rise 12 per cent from its current level as long as the US avoids another massive economic blockade.

"by the end of next year or earlier, the S & P 500 will reach 5000," he said. Over the past year, whenever I am optimistic about the future, we will achieve this goal more quickly. "

On Friday, the S & P closed at an all-time high of 4468. The index is up 19 per cent so far this year and 100 per cent since its low since the outbreak last year.