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...