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Yellen Capital LP Was 'Half-Right' In H2 2014
On July 15th 2014, The Federal Reserve uttered the following warning to exuberant equity investors, "Valuation metrics in some sectors do appear substantially stretched -- particularly those for smaller firms in the social-media and biotechnology industries." 5 months later, Yellen Capital LP is half right...
As Bloomberg reports,
Social-media shares declined after the report, as shown above, which tracks the performance of the 10 smallest U.S. companies by market value in the Solactive Social Media Index. They fell 15% as a group through yesterday, judging by an index that was equally weighted as of June 30.
Smaller biotech companies, on the other hand, rebounded from an initial slump. The Wells Fargo Biotechnology Small Cap Index, used in the chart, climbed 37 percent through yesterday. The median market value for the indicator’s 170 companies is $401 million, compared with about $1.5 billion for the social-media stocks.
The broad Russell 2000 small-cap inde is up just over 5% since the Fed's warning.
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Of course, we must always remember the Fed's follow-up explanation:
there’s no sign “we are obviously in bubble territory”
And...
Yellen: Can't Detect Asset Bubbles With Any Certainty
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After monetizing real assets, and running out of collateral, let's start up monetizing paper assets. Wheeeee !!
Oh, btw, when does ISDA default?
The only solution to all our problems is Physical.
No paper gold, no paper money, no paper food, and no paper cunt.
Unless you can hold it, swallow it or, at least, lick it, it ain’t worth shit. ;-)
Looney
https://pbs.twimg.com/media/B5pRHv9CcAAQBGI.jpg
I once tried a paper cunt
http://news.bme.com/wp-content/uploads/2008/09/pubring/lizardman/2005072...
Yellen's job is to create wealth by blowing bubbles in the stock and bond markets and to sustain real estate prices. And to make sure gold and silver are no threat to the dollar. Never pay attention to what she says but only to what she does.
With the 0.1% owning more wealth than the bottom 90% in America, it is mission accomplished by Yellen. She has served her masters well.
Duplicate - the postman always rings twice. Or, maybe, it's the cognac. I lift my glass to your health and happiness in the new year.
Fed probably needs to duplicate the warning too.
Janet's stock tips at eleven.
Federal Reserve credit inflation, as practiced and preached by Yellen and her predecessors, is the root cause of the asset bubble about to burst...
http://www.globaldeflationnews.com/jaguar-inflation-a-laymans-explanatio...
anatomy of a bubble...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
Every time I talk to, or hear someone discussing how low oil prices are a good thing, I just want to slide to the other side of the room.
I've been the financial heretic for several years, and I'll just suck my thumb for a little while longer. ;-)
When the door slams shut, I'll be sitting in a beach chair outside the fire exit drinking a Bombay Blue Sapphire Martini.