Back in July 2007 Citi's then CEO Chuck Prince, a little over a year before his bank received a gargantuan government bailout said "as long as the music is playing, you've got to get up and dance." Moments ago Janet Yellen just killed the music:
- YELLEN SAYS EQUITY MARKET VALUATIONS QUITE HIGH
Or, paraphrased, the $4.5 trillion balance sheet the US created, and the $22 trillion in assets purchased by global central banks to keep the dream alive, has lead to "quite high" stock prices.
The good news for Yellen, is that at least Congress can't blame her for leaking this only to Medley Global Advisors.
The better news: for a low, low monthly price, all subscribers to Yellen Capital Advisors will get the Chairmanwoman's tip on when to BTFD.
And with that The Dow has accelerated its weakness into the red for 2015.
And since last week's FOMC...
and here she is explaining that "Credit spreads are too low... equity valuations are quite high... there are potential dangers there"
Which is odd, because credit spreads have widened for over a year as her wealth-creating stock market has exploded ever higher...
Of course there is no need to worry... for 4 minutes after she uttered those words, someone decided to start selling vol in size...