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Don't Worry Folks, The Fed Says Stocks Aren't Overvalued
Remember when the Fed got its Series 7 and Series 63, and was solely engaged in the business of advising on stock valuation? Neiter do we. But that doesn't prevent it from now openly opining on what it thinks is the fair value of stocks:
- FED'S WILLIAMS SAYS U.S. STOCKS AREN'T OVERVALUED
So, the implication is one should buy stock then?
And if the market craters tomorrow, the Fed will surely make everyone who listened to this non-voting moron who has made a complete mockery of the Fed's inflation and full employment mandates and replaced them with the "fair stock value" mandate, whole at the expense of all the other taxpayers, right?
Finally, since the market is not overvalued here, what is the Fed's price target on the S&P 500, oh unregistered financial advisors-cum-Princeton academics of the Marriner Eccles building.
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Fuckin Goon!
US Stock Index is increase what, 25% after 2007 high, but Fed Balance Sheet is increase 4X. Simple math show that stock value should increase proportional inverse to dilution of petro dollar. Federal Reserve is simply state obvious but skittle flavor muppet is oblivious to slight of hand as Bankster cartel is skim value and wealth from every sector of society.
NO idea what you just said, and I agree completely.
i dunno what is a series 7 or 63 (BMW car ?) but this guy Mr. Williams, well, he works for THE FEDERAL RESERVE , so he MUST be real smart, right ? I trust whatever he says !
The point being made by this ZH article can't be OVERSTATED in the least.
It's nothing short of incredible & pathetic that that a sitting Fed Governor is opining in such a manner about the current "valuation" levels of equity markets.
It's not that he's likely to be massively wrong (which he is), but that talking about such matters is so far removed from the Federal Reserve's chartered purpose (the infamous dual mandate) that it couldn't be any further from their mission statement.
Then again, as with everything else today, WHO CARES, and WHO IS GOING TO DO ANYTHING ABOUT SUCH BLATANT ABUSES?
...and he promises not to come in your eye as well.
He said he's long M&M's.
yes but if SOMEONE FROM THE FED say we are not overvaled, it means, we are probbalay going higher. Do not fight the fed.
in the mean time....
The ADP will be the warm up for the BIG JOBS NUMBER FRIDAY...however....
I think the most interesting chart is the transports, which seems to be pin pointing more downside possibly coming.
SEE HERE=> http://bit.ly/1ieTPQX
Boris - you follow proudly in the tradition of Dostoyevsky, Tolstoy, Chekhov...simply operating in the new medium but with the same amazingly incomprehenisble clarity. Your comments are probably the only part of the ponzi show broadcast here on ZH I can bear any longer. The rest of the plot and characters are tired and boring.
There are still a few posters around who I enjoy reading, anyone know what happened to McMolotov?
I sent the bitch a packin, owed me a ton too.
Stock markets usually never actually catch up with the devaluation in their local currencies; but the participants have a good time pretending they have "made money". Actually they made numbers but not buying power. Except, of course, for traders who bought low and sold high; but you can do that in any market. Feeder Cattle and Long Bonds make a lot more sense and are a lot easier to trade than the stock market.
Boris is smart man. You should leesen to.
Pre-earnings hope ramping. But how is AMZN PE at 1,400 "cheap"? Pretty idiotic economist.
sounds like more pumpin' the muppets to me.
He's wrong. they are overvalued. this is the momentum phase of the market; we're waiting for a period of failure to make new highs and some of the recent entrants to sell out for the downwash to begin. It's impossible to say when this will happen. But that's all the stock market has right now is momentum; which of course, sooner or later, runs out. Another way to look at it is we're in the "popular enthusiasm" phase.
Everybody in the pool... excess liquidity is fine
Thanks for the reassurance; now I can sleep at night. And to think all this time I was foolishly worried that it was overvalued.
John Law Mississippi Bubble Redux.
Yep. same, same.
You'll like this better, Doc:
http://www.cnbc.com/id/101316298
100 disability scammers (all cops and firemen) arrested today in NYC. Certainly gave me a smile.
Now, if you'll excuse me, I gotta go tally my ill-gotten profits from banging the close today.
But I'm constantly told by the left that this kind of stuff never happens. To be fair, when open theft is the standard operating procedure by the empire, one can hardly blame them.
Why the Fed is doomed. http://www.worldcomplex.blogspot.ca/2014/01/a-system-doomed-to-fail.html
If he says so, it must be so... let the Fed buy the stocks! I'll settle for cash ... or even better... gold
there's a nice bit of tell
fuck you Yellen
All 'honest' economists don't know how to recognize a bubble, but they can tell you when there isn't one. Did I get that right?
Fuckers.
Does that mean we can sue em if we lose money???
Absolutely
Wish I could sue themover gold manipulation. sigh......
Or jail them! And Corzine too! WTF ever happened to that assclown anyway?
Last I heard, the fuck was trying to start up another shop.
Could you imagine? 'come work for me, lets bet it ALL on black'
When Mr Karma eventually pays a visit to The Honorable Mr Corzine , it will be , as they say, A BITCH
Karma better hurry up, Corzine isn't long of this earth. most now in their 60s, the FOMC looks like they will get a free pass on payback for what they are doing now. then again, Greenspan, dementia and all, is still around to get kicked about for his failures. maybe we get lucky.
As tony montanta would say, how about a one way ticket to the resurrection? So long john, have a good trip!
As tony montanta would say, how about a one way ticket to the resurrection? So long john, have a good trip!
Just speculated such in a comment below
We once had a client who sued Disney over copyright infringement and won. They just waited for him to die and never paid out a cent. I assume the Fed would pursue a similar course if they were ever successfully brought to court.
LOLOL, can you imagine getting a writ of execution against the Fed? I'd love to see the look on those cocksucker's faces when some armed po-pos came with a moving van to start taking shit.
Too bad it's currency and not money you are dealing with.
It's just a commen casino for your tribe or gang members.
Well then, Turn those machines back on! Get those brokers back in here!
Stocks are not overvalued especially FB, NFLX, TSLA and TWTR.
Only gold and silver are overvalued by 50%.
Sincerely,
Your friend, the FED
They must be using a 0.05% discount rate for their DCF valuation.
I wonder if FINRA will allow this to be entered as testimony in an arbitration proceeding in the future.
"All the Fed Governors said the markets were not overvalued and that we should reach for risk to get Grandma Jones her returns" ~ Financial Advisor A
I know they are hiring cops but I wonder if they are hiring Financial Advisors. They are a private bank afterall.
When all you have is a cocksucker...
File this one under "home prices will never fall."
Figures that John Williams, Federal Reserve Bank President of that fantasy land called San Francisco says this.
Fine Dr. Williams; if this is so I suggest your every vote from now to the edge of time be to end QE completely, immediately, and forever.
But it won't be, will it, you two-faced equivocating Piled higher & Deeper (PhD) academic shill of a hollow shell of a bone flour biscuit of a Man.
http://www.frbsf.org/economic-research/economists/john-williams/
Did he split with another one?
LoL! Well, nothing is 'over valued' when you have a printing press.
Williams speak with forked tongue.
S&P is not over valued. FED is only transmitting that dollar is going to be devalued against stuff soon.
S&P to 2000 soon. I am long - what say you ZH ?
A US dollar reset coming very soon.
Countries have quietly dumping the US dollar.
Evans, Dudley and Yellen are well aware of the overnight currency devaluation.
It's been agreed to with the IMF?
Didn't Evans say he wants the S&P at 2200? The Fed is going to run this market up to absurd levels.
It will make the last DOT COM bubble look more fairly valued.
The Fed's PhD economic mad men are doing their real-time experiment on the economy.
Paper claims on real assets are better than paper claims on...well, nothing.
So at least relative to US paper money, he may be right.
PANIC! a'comin....http://optionvol.blogspot.com/2013/09/op-ed-fukushima-nuclear-disaster-l...
Indexes are result of FED software. As long as they say they will make the graphs go higher then I believe them. Obama told the nation somewhere around the exact bottom in 2009 to buy stocks and look where they are today.
Disclaimer: I have just been released from a pilot program at a FEMA re-education facility.
A lot of people would have listened to him....but nobody believes a Kenyan.
If you like your 200% stock rally! you can keep your stock rally
It feels like this is the last bastion. FED is saying that they will be buying futures and stocks through the banks that owns it.
The last bastion, in the last financial crisis' they tried to save the american consumer, that failed, then they tried to fool him into consuming what little he had left, that failed. Now they don't care about the consumer at all, banks and corporations have found a way to bypass the consumer, monetizing and bying their own stock, and the consumer will pay for it, should he want it or not, through his savings and taxes.
Way to go America, land of the fear, home of the slave.
The Fed doth protest too much, methinks.
He knows Yellen will spearhead a move to lobby Congress for new added powers such as buying stocks and buying treasuries directly from the government.
I keep sayin' the goal is Full Soviet!
"You just went full Soviet, never go full Soviet!"
WHEN THEY OWN IT ALL, DOES THAT MEAN WE'RE FREE?
How could they know? As was on ZH last week Dudley man said that they don't know how QE really works.
http://www.ny.frb.org/newsevents/speeches/2014/dud140104.html
Common reason says they have no fucking idea where the optimal value of stocks is.
You fucking lying central banker bastards, all of you should be hanged in the public.
torches and pitchforks coming soon after the food shortages and the removal of ATM machines from all but a few neighborhoods.
He would say the same thing with the S&P at twice it's current level. When has a Fed governor EVER seen a bubble or overvaluation in any asset? How about never.
Time to sell!
401k must support baby boomer retirement. after belly of baby boomer retirement curve expires, then they will let the "Bernie' equity market deflate.
We need to make sure everyone is all-in on stocks before we crash this bitch.
The choice to make is btfath stocks or undervalued pm. Which do you feel better about?
Or horde cash for the crash buy
Completely out of the sphere of Federal Reserve commentary.
All this tells us that stocks are their mission...or at least part of it.
They will set the value....and I'll bet they forget to tell you when they are indeed overvalued.
Emphasis on cum....new year same shiite...
"FED'S WILLIAMS SAYS U.S. STOCKS AREN'T OVERVALUED"
Reminds me of when Greenspan said the housing market was just frothy.
Who is on the other side of the trade? Hint: "Muppets crucified after Goldman closes one of it's top trades of 2014."
What is Williams? A banker.
What is Goldman? A bank AND a brokerage. My, how convenient.
Goldman was just downgraded. Is it over valued or under valued? It is valued at 187.27 as of the close of the market today. It was valued at 190.48 on 10/07/09. It was valued at 90.08 on 10/03/11. It is currenty above one price and below the other price. Is it over valued or under valued?
It is just valued. It might be valued more tomorrow, or it might be valued less.
When Apple topped out, there was a race by brokerage analysts to put the highest value on it. $1,000 target. Never got there.
Are Williams words reassuring? Not in the least. The people on the other side of the trade are not his constituents. Goldman and others on his side, are.
No stock is over or under valued. It is valued at whatever the price is right now.
Apple stock jumped on the China iPhone news, then gave it all back, as if there was no China news.
Problems is the FED is not making predictions, it is saying what it will do, put market forces aside (sooner or later they will break through, but it seems that is a matter of geopolitical and political analysis, not economic).
Take it easy... Everything is front ran now.....when it reverses it's gonna hurt bad
The FED has been buying stox for 4 years through their owner banks via QE. The idea that there is any way to place a "value" on them is absurd when infinite money printing is driving them up. "Over valued" and "under valued" have been rendered meaningless.
Buy stocks with money that has wet ink....only in America!
Don't worry, Mr. Williams. Playing with dynamite is safe. Feel free to do so at your leisure.
according to efficient market theory the valuation of stocks, and for that matter all assets, are always perfect.
Williams et al. keep real asset price histories unseen.
http://www.showrealhist.com/RHandRD.html
Why do they do this, does anyone have any idea?
Why doesn't the fucking fed just open an online brokerage already? In fact, just replace the dollar with fractional shares of the Vanguard S&P 500 fund.
IF infinite dollar denominated credit can be created then infinite dollar denominated valuations can thusly likewise also be created.
The possibility of infinite dollar denominated credit creation implies the attendant possibility of infinite dollar denominated valuations.
IF -You- had been granted the exquisite priviledge of creating practically infinite amounts of credit for Yourself and Your chosen peer group, credit that by Law MUST be treated in all respects as the Currency of the Land in ALL transactions; at what point would You cease emitting this credit and buying real commodities, goods and services, land/real estate and other revenue/profit stream generating concerns and rentier assets?
While there IS NO constraint on credit emission there CAN BE NO constraint on asset valuation as expressed in denomination of the credit emission in question.
Just to be sure that valuations are completely dubious lets Us also ( Mr. Kanjorski ) suspend whatever accounting principles formerly (legally) employed to imply/justify/elucidate asset valuations conceptions, expectations and profitibility, etc...
That some FED Sith Douchebag knowingly utilizes Imperial Lawyerspeak or Orwellian Doublespeak to justify the crime of counterfeiting is unsurprising to Me...
Stocks say the Fed is overvalued though...
I have a very easy ballpark metric for valuation. Take the yearly change in equity, add the amount paid to dividends and share purchasing, divide by the number of common shares, then multiply by 10. On an annualized basis for the first 3 quarters of 2013, Goldman Sachs is worth $198.92/share. Current stock price is $178. See? I told you guys my boss... I mean.... the stock market is fairly valued.
I don't remember him pounding the table last year when it was 30% cheaper and earnings were within 5% or so of the current levels.
Series 7? I thought those dudes just sold equity-indexed annuities.
You still haven't seen the blow off top yet.eom
do you guys really have a faith on the FED???
that's ridiculous
I guess it can just go on like this f o r e v e r . . .
yep, better sell more vix futures seeing as they are clearly going to zero; the FED has got it all under control, volatility is a thing of the past.
I agree because stocks are priced in dollars.
Fuck permanent plateau. I demand a permanently high slope of gains.
Department of central planning ordered ...
The Fed and the ESF derivative exposure to the market inducies is about to go south on them.