Market tensions about the prospect of trade and tariffs should start taking a back seat to powerful earnings results on Wall Street next week, according to Ed Yardeni, founder of Yardeni Research.

If earnings materialize as anticipated, the bull market should resume, according to Yardeni, who is publishing a book, Predicting The Markets: A Professional Biography, based on his 40-year career as one of the most closely followed equity market strategists. Since the equity market correction began in early February, the forward multiple on the S&P 500 has fallen from 18 to 16.

That means stocks aren’t as expensive as many investors believe when low rates of inflation and interest rates are factored into the equation. And some analysts are estimating that the stockholders will receive an injection of $400 billion in dividends over the next few months.

Many foreign companies pay dividends annually or semi-annually and most of those are paid in the spring. In the U.S., some companies could pay special dividends as they repatriate trillions held in offshore accounts. This combination could be enough to keep many investors in the market.

Yardeni thinks investors should place about 50 percent of their equity in foreign stocks, with 30 percent allocated to Japan and Europe and the rest going to emerging markets.

On the trade front, Yardeni thinks President Trump’s rhetoric will turn out to be more ferocious than his actual policies. “I don’t think we’re going to have a trade war,” he said in an interview yesterday.

Using his unconventional, headline-grabbing style, President Trump believes he can influence outcomes more effectively by negotiating in public. Like most trained economists, Yardeni, who earned his doctorate studying under Yale University Nobel laureate James Tobin, believes in free trade.

The problem, in his view, is that free trade “lends itself to being abused,” which can result in unfair trade, he explains. Those who are hurt or aren’t benefiting from free trade can “be easily persuaded by populists and nationalists” that they are victims.