Ed Yardeni: Friday's market stumbles are a healthy development

• The market pullback is a 'healthy development' after being 'too frothy,' preventing an unsustainable straight upward trend.
• Current market strength is attributed to 'Fabulous Earnings Momentum' (FEMO), indicating genuine earnings growth, rather than just 'Fear Of Missing Out' (FOMO).
• AI is considered the 'real deal' and a continuation of the digital revolution, with data seen as a new, abundant factor of production driving future growth.
• The market is not seen as a repeat of the 1999-2000 dot-com bubble, and past 'panic attacks' over geopolitical events have historically presented buying opportunities.

Ed Yardeni views the current market sell-off as a healthy development, suggesting the market was too frothy. He believes the underlying strength is driven by 'Fabulous Earnings Momentum' (FEMO) and the ongoing digital revolution, particularly AI. He maintains a long-term bullish outlook for the S&P 500, with targets of 8,250 and 10,000 by the end of the decade.