Edward Yardeni is questioning the market’s win streak.
The long-time bull believes the record rally will take a breather because valuation multiples are getting back to nosebleed altitudes.
“I’m concerned about a possible melt-up here,” the Yardeni Research president told CNBC’s “Trading Nation” on Friday. “I’ve been shooting for 3,500 for the S&P 500 by the end of next year, and we’re getting closer. Faster than I would have expected.”
And the consequences could be downright painful.
″[A] 10% to 20% [correction] would be quite possible if this market gets to 3,500 well ahead of my schedule,” he said.
Yardeni said he has been worrying about the rally for a couple of months.
During “Trading Nation” on Nov. 1, Yardeni said: “I just don’t want too much of a good thing here. I’d like this bull market to continue at a leisurely pace, not in a melt-up fashion.”
Since then, the S&P 500 is up almost 7% while the Nasdaq has surged about 9%.
“Bull markets do best when you’ve got a wall of worries,” Yardeni said. “What I’m worrying about is nobody is worried anymore.”