Veteran Wall Street investor Ed Yardeni stated that investors are redirecting their focus from Middle East conflicts to market fundamentals. Despite concerns that tensions with Iran could trigger 1970s-style stagflation, Yardeni noted that the U.S. economy has demonstrated its ability to withstand multiple stress tests since the pandemic began, including supply chain disruptions, inflation surges, and interest rate hikes. In an interview, Yardeni remarked, "History shows that geopolitical crises often turn out to be good buying opportunities. That’s the situation we’re in now—investors are looking beyond the war." Despite recent geopolitical tensions, Yardeni expects U.S. economic growth to rebound in the spring after a weather-related slowdown. He pointed out that bank profits remain strong and consumer conditions are holding up well. Yardeni said, "The economy’s resilience really shows that our capital markets can absorb significant stress without seeing a major downturn in economic activity." Yardeni ended his 15-year overweight recommendation on mega-cap tech stocks, often referred to as the "Magnificent Seven," at the end of last year. He expects the 10-year U.S. Treasury yield to fluctuate between 4.25% and 4.75% this year, while the U.S. dollar may hold near current levels, despite earlier market worries about de-dollarization trends.