Veteran strategist Ed Yardeni warns that U.S. stocks are overvalued and could “face a shock if Covid-19 cases continue to surge and ripple across the U.S., and tensions with China accelerate.” This according to a recent article in Business Insider.

The president of Yardeni Research is known for his typically bullish market predictions, but delivered a different message in an interview with CNBC last month: “We’ve had a melt-up and that’s very visible in valuation multiples,” he said, adding, “It’s got me thinking whether it’s time to go global during this bull market.” Regarding the ongoing pandemic, Yardeni argued, “we don’t seem to be handling the reopening up of our economy and social distancing to minimize the flare-ups of the virus as well as they’re doing in some parts of Asia and Europe.”

In early July, Yardeni revised his prediction of a V-shaped recovery to a “check-mark-shaped recovery,” the article reports, adding that he thinks those invested in U.S. stocks should prepare for a sharp correction as Covid-19 cases rise and extend their reach to potential global buying opportunities.

“We’re seeing major states reversing the reopening of their economies,” Yardeni told CNBC, adding, “so, all this good news we’ve gotten in May and June on the economic front, including even the unemployment numbers, is vulnerable.” He also noted the escalation of an “increasingly and potentially dangerous conflict between the United States and China” as a threat to equities.