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...