Wall Street predicted a possible repeat of the "Roaring '20s"

The 21st century could see a repeat of the Roaring 20s, says analyst Yardeni, noting that the world is currently “in the early stages of a productivity boom.” He draws an analogy between the Spanish flu and CORONAVIRUS pandemics

The 20s of the 21st century could become another “roaring” (“stormy”) 20s, like the 1920s, said Ed Yardeni, founder of the consulting agency Yardeni Research, on the BLOOMBERG podcast .

Drawing parallels between the Spanish flu pandemic that preceded the 1920s and the effects of the coronavirus pandemic, Yardeni argues that “we are in the early stages of a productivity boom.”

According to him, wages could grow even faster due to the rapid growth in productivity, which is the reason for the long-term bullish sentiment in the stock markets (bullish sentiment - the predominance of buy transactions, rising quotations). Even if the “speculative tech bubble” bursts, it will not change “the course of progress that would have been fundamentally achieved in the turbulent scenario of the 2020s,” the analyst said.

Yardeni also noted the growing role of central banks in the business environment when discussing their 2% inflation target, calling it “kind of nonsense.” “It gives them the opportunity to do something, to put policies in place to achieve that goal, to sell their relevance. But I think central banks have become too important in our business lives because they are so intrusive,” he said.

The "Roaring" or "Roaring" 20s is the period following the Spanish Flu pandemic and before the Wall Street Crash of 1929, which saw rapid growth in the economic, political, technological and cultural spheres. After the coronavirus pandemic, analysts predict a similar development for the 20s of the 21st century.

In January 2021, at that time, the HEAD of Barclays bank, Jes Staley, said that as the consequences of the covid-19 pandemic were overcome , the world could once again experience a boom in demand and economic growth. At the same time, he noted that during such a period the effects of development were distributed unevenly in society, and pointed to mass unrest in the United States .

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HSBC senior economic adviser Stephen King stressed that while the Roaring '20s were great for the "real-life Gatsbys" who made their fortunes, they also led to political and financial turmoil. “Be sure to welcome the strength of the stock market and the possibility of a post-pandemic economic recovery. But also get ready for the fact that all this will end in tears,” he said then.