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Yellen Warns Of Small Cap Bubble
In mid February Fed's Tarullo first opined on the "stretched valuations" in small and high-tech companies in the US - while careful not to label the entire market a bubble. It seems, given Janet Yellen's comments today, that this is the new meme...
- *YELLEN SEES POCKETS OF POSSIBLE OVER-VALUATION IN SMALL CAPS
- *YELLEN SAYS EQUITY MARKET VALUATIONS ARE IN HISTORICAL RANGES+
Remember - Don't fight the Fed!! Sell Small Caps!
Yellen repeats that stock values are in “historically normal ranges”
“There are pockets where we can potentially see mis-valuations,” Yellen said in response to questions after speech to Joint Economic Committee
Still, there’s no sign “we are obviously in bubble territory”
And then there's this:
- Yellen: Can't Detect Asset Bubbles With Any Certainty
Perhaps the following 2 charts will help...
Nope, no bubble here...
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By historical ranges she means 1999 and 2007.
I could tell them before I couuldn't
AMZN, NFLX, TSLA, CMG, SBUX are not in a bubble becuase of unique circumstances.
Vol is crazy on these. ...Tvix off 20%....what the what?!
The most leveraged stocks are letting go.
Next comes the core.
"POSSIBLE OVER-VALUATION IN SMALL CAPS"
I see a crowd forming at the exits..
Interesting how the Russell started selling off well before these "revelations" from Yellen. Yeah, not a rigged market. No insider information here, move along.
"We need household growth to strengthen the economy. Household growth will return when the economy strengthens." - A skilled/coached wordsmith, but makes it a practice to violate the law of non-contraction. Any semi-intelligent person watching this is not fooled by the many words. We're fucked.
Whoever, insults her with a comment like that, will pay the price. They are the world's mafia. period
Act accordingly. starve the beast. Let the banks and the hedge funds cannibalize each other. Grab your drink of choice and watch.
Just in case, stay away from the screen and keyboard so that you do not spill anything.
*law of non-contradiction
stoopid spellcheckr on my fone
cool - stock pics from Janet
wonder if she collects a promotion fee
"There ain't nuthin uglier than an old white woman."
Fred Sanford, Sanford and Son
WSJ has trailg p/e of 100 ! That's not a bubble? BULLCRAP
Frothy!
Fama: But there are no bubbles?
Mission Accomplished yet??
brownie, yer doin one heck of a job.
cant wait to get its take on pinksheets, errrr large caps!
I wonder if it was the 85x P/E that tipped her off? When she re-cranks 'QE' 100x P/E won't be far behind!
Looks like she's got the Nobel Prize for Economics in the bag!
Another bold accomplishment for gender diversity!
She just can not admit that the fed is in the business of creating bubbles and distorting markets to the advantage of a very elite few.
Yellen: "Rumors persist of an anus located somewhere on my posterior, but as of yet, I have been unable to locate it."
It seems for right now the central planners are capable of smashing any asset class they wish without collapsing the system. Gold...Check...silver....... check.... Small caps..... check. Lets' see how they do with oil.
i think they can manipulate commodity prices to extremes because there is really no true economic output. nobody is consuming, therefore they could probably even get away with oil too.
Oil is not like other commodities. You burn every drop of it and it is gone. Nothing else is like that. You eat corn but you grow more.
And if they are manipulating it, they have manipulated it north of $100 most of this year.
Oil at $100 is a pervasive, global drain on everything. EVERYTHING.
Whatever happened to the abundance narrative?
good point. i just think they yield more return from front running the mannipulation (short/long) rather than gaining from returns on delivery ect.. they get a free pass becasue there really isnt much of a consumer market and nobody to cry foul. 200 dollar oil? no prob! just increase the snap card limits lol does that make sense?
No.
Oil is the one thing immune. Consumption of it is not discretionary. You HAVE to move food to grocery store shelves and it's only done one way, burning diesel.
Here is a site where you can select China and look at their consumption ramp.
http://mazamascience.com/OilExport/
Look at India, too. They don't give a shit what the Fed does. They burn it at faster and faster rates.
Wow, awesome link,. thanks.
You can really see the correlation between energy consumption & GDP. Look at Japan. Consumption flat since the mid 90s. Europe, NAmerica, all down.
The mantle of the earth is 90% oil.
maskone909, spot on. Everything is paper: Oil, Wheat, Gold, Silver. A financial system based on complete fantasy, totally malleable by an elite group of scumbags.
Notice they cannot do it all at once.
Whenever they try, the DXY gets hammered.
Yesterday being the exception that proves the rule.
Jump banker jump.
Please....modern bankers do not jump. They have someone push them. Or do something more interesting. Nail guns are passe.
I would argue that the mkts (pfft) have not traded on fundamentals for at least 5 years
She needs to be less specific on this kind of thing - and go back to Greenie's book of tricks by calling it 'irrational exuberance".
'We're not in a bubble....but I wouldn't know a bubble if I saw one'......What a damn 3 ring clownshow!
Listen this is all bullshit Janet, may I call you Janet?.....I thought everything was fixed in 2009 / 2010.....we were promised it was over. Still 3-4 years later you are fucking with the markets....if everything was fixed stop intervening...just stop it right now and we will forgive you...if you don't raise interest rates right this second, at least admit it's not fixed, and that it never will be, and you have to keep interest rates low forever....and then we will also forgive you...if you do neither, then we will NEVER forgive you and you will regret this day when we stone you all for your transgressions against the people.......
Yellen must have stumbled on an article from Z/H whilst looking for a new looking for a new hair-stylist on the interwebs...
well what do ya know...
this lyin ass MoneyChanger cunt steps before her employees and mumbles meaningless bullshit and presto, chango, the phony paper prices of Gold and Silver fall off a fucking cliff....
yeah, pure coincidence driven by earth shaterring economic news/data....
complete fucking farce...
DEATH TO THE MONEYCHANGERS.
And now these 'everyone on the edge of your seat' jawboning sessions are a daily event now.....we used to laugh at Castro and his weekly 1 hour mandatory national addresses.....he had nothing on these guys!
So does this mean new Dow highs on transfer of small cap money? Seems that way
*YELLEN SAYS EQUITY MARKET VALUATIONS ARE IN HYSTERICAL RANGES+
There, I fixed it.
Putins fault - send the nukes already.
Translation: If you're in, get the fuck out.
Do any of these clowns asking questions of old yeller even understand what the hell is even going on?
It sure wouldn't appear so....after Paulsons blatant lying to them, and Bernank's serial perjury before them time after time, I guess they just keep going along with this Kangaroo Court bullshit for the sake of keeping their phoney-baloney jobs.
It's that or 'suicide'.
What committee is asking the questions of old yeller. I would like to look it up to see who sits on it.
Yellen offers further clarification: Small Cap = <$100 Billion
Small cap...yer on yer own. Large cap is TBTF.
But if we didn't have a centrally-planned economy and traded with each other with barbarous relics, things could get too risky.
/SARC!!!!
bitch said with a straight face..
"housing is affordable..."
i swear to Al Swearington, i getting close to pulling a "Travis" on one of these sociopaths....
FUCK!!!!!!!!!!!!!!!!!!!!!
Housing is as affordable as it was in 2001 on a purely monthly payment basis, at least in the WPB, FL area. A drop in interest rates will make it so even at higher prices. Down payments and credit are the obstacles. In the end is will be deemed that housing investors on the first line actually ended up doing fairly well through it all. The interest collected in the end did cover most of the defaults. The holes that still remain are the result of over leverage and the fraudulent sale of derivatives.
What's her 'historical price range' timeline.....Dot.com bubble era? Housing bubble era?
Yup! Fundamentals don't matter anymore. We are in uncharted waters (heading right towards the iceberg).
and now look at the Dow...
up 100 points on WHAT??????
did we get some new/great economic news???????
r we rich again????
did our manufacturing base re-appear????
r there 2 "paid for" cars in every garage?????
FUCK OFF....
I can't even look at the shit anymore.
i mean bro, where the fuck r we??????
u cant not look because there is no escaping the bullshit....
and mother fuckers still will not remove themselves to the greatest extent possible from the rigged, debt based currency system...
THIS COUNTRY AND ITS CITIZENS DESERVED THE FUCKING THEY R GETTING....
fucking serfs........
KILL A POLITICIAN...
DEATH TO THE MONEYCHANGERS...
"Yellen: Can't Detect Asset Bubbles With Any Certainty"
She never will. Vested interest clouds her objectivity.
Remember when Greenspan made his irrational exuberance speech? The market tanked, until it realized he wasn't going to do anything aboutit.
This women's voice makes my feel sick.
The way she says "asset purchases" -
I would take water boarding over listening to her talk.
Pressure builds, seams creak, signs are everywhere.
Now we just wait
for the big event.
bad haiku for worse future
Haiku traditionally follows a 5-7-5 syllable pattern. Consider....
Maistro, Bernanke,
Yellen now up to the plate
Whoosh! Strike three, you're out!
or
The Chairman told us
We don't monetarize debt
and many more lies.
or
Justice delayed is
another reason for the
next revolution.
Yesterday, when Einhorn revealed Bernacke thought war had something to do with hyperinflation, I finally realized they really do not have the slightest inkling of what is happening or what could happen. I guess it just shows us the extent of their influence. They can make more money and buy stuff no one wants...and talk....that is it. Deep thinking is not what they do.
"historic normal" = ticker SPY being so insanely expensive that it pays 1.9% dividends? I have a deal for you. I'll sell you my shoe store for 1 million dollars and you'll earn a modest 19k per year on it. Deal? If you don't like it after a year, I'm sure you could sell it to someone else for more than 1 mil, right?
I could care less that she has no clue. Don't care that she is inflicting untold damage to the economy, future generations & free markets! The only thing that's important is that she is a women & that we are making big gains in gender diversity/sensitivity - even if it means destroying our way of life as we know it! Change You Can Believe In!
Does she really want her likely audience to think she's totally fucking ignorant?
Someone needs to send her a bubble to remind the dumb bitch what one looks like.
These are the bubbles you're looking for. You can go about your business. Move along.
Janet Yellen,
Why do you NEVER show inflation-adjusted asset price histories?
Real Homes, Real Dow
http://www.showrealhist.com/RHandRD.html
Shiller does, and he just won the Nobel in economics, and he co-authored with your Nobel-winner husband.
See the bottom of this page for inspiration ...
http://www.showrealhist.com/
TVIX has a huge lawsuit coming there way.