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 […]
Biotech stock bubble set for massive implosion: Stocks rose 88% AFTER Fed chair admitted they were overvalued
Biotech stock bubble set for massive implosion: Stocks rose 88% AFTER Fed chair admitted they were overvaluedWednesday, July 8, 2015
By Paul Martinby: J. D. HeyesNaturalNews.comWednesday, July 08, 2015If you’re trying to understand today’s stock market and are having some degree of difficulty, you’re not alone.The markets are confusing enough sometimes for experts, so they can be particularly baffling for laypersons. […]
(NaturalNews) If you’re trying to understand today’s stock market and are having some degree of difficulty, you’re not alone.The markets are confusing enough sometimes for experts, so they can be particularly baffling for laypersons. Still, a few economic basics ought to be pretty simple to understand, right?Wrong – apparently.About a year ago, as documented by the Zero Hedge website, Federal […]
“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 […]
Janet Yellen has a crystal ball. And she sees trouble ahead…Yellen warned the investing public yesterday that stocks and bonds look risky in this ultra-low interest rate environment.But as you’ll see, Ms. Yellen’s crystal ball is notoriously foggy…and we might even make our money by ignoring her fortunetelling…“In a conversation with Christine Lagarde, the managing director of the International Monetary […]
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 […]
Who will tell me when to sell ahead of everyone else?A Tale of Two Bubbles:Biotech and FrackingLast July, Janet Yellen said that Biotech was overvalued. Right after that, fracking stocks crashed totally “unexpectedly”, to the tune of trillions (including the debt). Everyone said “that’s odd, I wonder why that happened?”.So after that, momentum chasers stopped investing in ‘Energy Indepedence’ with […]