Just over a year ago, Janet Yellen did the unthinkable. In a moment of clarity, The Fed called out two darlings of the momentum-chasing euphoria-driven stock buying frenzy for ‘special’ treatment when Yellen uttered the Cramer-mind-blowing fact that “small cap social media and biotech stock valuations were substantially stretched.” It appears, judging by today’s market, that she was half right…The […]
Janet Yellen is facing Congress on Wednesday for her semi-annual testimony.And one year ago today, Yellen’s monetary policy report warned about stock market valuations, particularly in social media and biotech stocks. It was an awful call. Yellen’s testimony last year said:”Some broad equity price indexes have increased to all-time highs in nominal terms since the end of 2013. However, valuation measures for the overall market in […]
“Don’t fight the Fed,” unless The Fed says “sell.” That appears to be the message loud and clear from an absolutely exuberant Biotech bubble that is now up over 75% from Janet Yellen’s “stretched valuations” warning last year…Up almost 90% from post-Yellen dip lows…Yellen’s “irrational exuberance” moment.
Nevertheless, valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms […]
I have to agree with this article.
At a recent International Monetary Fund event in Washington, D.C., Federal Reserve Chair Janet Yellen opined about the “potential dangers” posed by “quite high” stock market valuations. This was not her first market prognostication. In July 2014 she singled out biotech and social-media stocks as having “substantially stretched” valuations. Such comments are ill considered […]
Don’t Fret About Tobin’s QBloomberg has a piece this morning on another valuation indictor, this time it’s Tobin’s Q, showing that the stock market is dramatically overvalued.
If you sold every share of every company in the U.S. and used the money to buy up all the factories, machines and inventory, you’d have some cash left over. That, in a nutshell, […]
View photo.(Bloomberg)The iShares Nasdaq Biotechnology ETF over 12 monthsStocks are selling off on Thursday after a post-Fed rally yesterday.
But biotech stocks are rallying, up nearly 2%. In fact, biotech stocks have been on fire all year. They’re up about 15% year-to-date.Last week, Max Nisen at Quartz wrote that while everyone is focusing on massive tech valuations, the biotech industry is where […]
View photo.(Bloomberg)The iShares Nasdaq Biotechnology ETF over 12 monthsStocks sold off on Thursday after a post-Fed rally on Wednesday.
But the Nasdaq still gained ground thanks to the biotech sector which gained about 2% on Thursday. In fact, biotech stocks have been on fire all year. They’re up about 15% year-to-date.Last month, Max Nisen at Quartz wrote that while everyone is focusing […]
With a firm “no comment” Janet Yellen shied away from burstng the bubble in “extremely stretched” Biotech and Social Media stocks, but was forced to admit that “overall measures of equity valluations are on the high side.” Then, rather oddly, she notes that The Fed sees unusually low spreads in corporate bond markets… which is odd since they have actually […]
Get Forex buy/sell signals directly to your email and by SMS.To learn more click hereThe gold markets fell again during the session on Tuesday, as the Federal Reserve Chairwoman Janet Yellen suggested that the US economy will more than likely continue to need support going forward. In other words, it’s possible that the US dollar could continue to suffer at […]
The Frankfurt stock exchange today. Photograph: STRINGER/GERMANY/REUTERSLast night’s dovish tone from the US central bank has lifted European stock markets, pushed the pound higher, and sent the VIX volatility index down to its lowest level in around eight years.The Fed sparked the rally last night, by giving no clear indication of when interest rates might rise, and by refusing to […]
