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Yellen: "No Bubble Here"
Moments ago, Janet Yellen was asked if there is something out of place with the S&P hitting all time highs at a time when even she (not to mention numerous other Fed presidents) discuss froth in the bond markets. Her answer: no. Specifically, based on some "model" the Fed watches to get a "feeling" for valuations, she concluded the equity valuations are not out of historical norms.
In other words, "no bubble here."
And here is what JPM had to say about that.
Even assuming trailing earnings are valid, sustainable, and not goosed by the Fed itself (not to mention non-GAAP accounting gimmickry): the most recent median S&P 500 Price to Earnings ratio as of this moment is higher than 89% of all P/E prints in the history of the market. Said otherwise, equities have only been more expensive just about 10% in the history of the S&P.
Nope, no bubble here.
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What do you think she's going to say..."run as fast as you can". Multiples could be twice what they are and her story line should be the same. Her testimony means nothing....let me rephrase...her opinion (or that of the Fed) of the market is meaningless. She just can't say anything that may falls outside the status quo that all is good (or at least getting better).
I am thinking that the cost of money has to be involved in the calculation.
Price is high because money is cheap for the banks and crony crooks. Earnings are high because money is cheap for the banks an crony crooks.
It is a bubble because money is cheap for the banks and crony crooks. If money was not high then earnings would be way down and then price would come way down as well.
Of course she says there's no bubble, she sets the indexes on her spreadsheet every morning before tiffin.
In Japan P/E is enormous because interest rates are zero. These are extraordinary interest rates and you should not expect normal P/E s with that either. Sure, it is all manipulation, but nonetheless.
I like Canada. Low P/E, yet most of the large companies have inverse correlation to interest rates and have suffered over the past 35 years (hence the non-existent equity risk premium).
No bubble, our central planners have everything under control.
Not a bubble yet compared to the bubble she's contemplating.
Pyramid scheme
All a stock market represents is a redistribution on the claims to wealth. Yeah, it's unfair. Take advantage.
This may have been Yellen's "I guess I don't buy your premise" moment.
Yellen's "Common Sense" and brains are below- in her ass.
From Greenspan onwards via Ben to her- The Fed is an asinine family. Common feature/factor- Brains in their asses. Spewing Crap all around.
There's no bubble... It's a phukin' balloon. Just keep going Yellen, there's plenty of hot air to fill it even moar. There will be no recovery until this balloon pops. I just hope it will happen during my lifetime.
US debt held by the Federal Reserve at the end of 2013: A new record high!
Banksters “print” more money than ever!
http://failedevolution.blogspot.gr/2014/06/us-debt-held-by-federal-reser...
That eunich looks like twiggy from buck rogers, I might have to watch these lowlifes squeeze earth to death, but at least I dont have to go through life with that face on the top of my neck.
Paging Lieutant Frank Drebin outside the fireworks factory.
Nobody has real power or the ability to own anyone unless & until they have WMD....period.
The bigger the lie, the easier it is to get the public to accept it. The Jews after all did learn some lessons from the Nazis.