This Govt Employee Delivered Your Mail

This Govt Employee Cost You Money

It was about nine months ago that Janet Yellin, Fed chairman, said that biotech stocks were overvalued.  Said they were stretched. Since that call, biotech stocks have been a stock market star.

Now she decides to kill some time by making another call, this one that stock market values are "quite high".  Courtesy of the modest audience at CNBC and the gigantic audience on social media, the news of this comment contributed heavily to yesterday's market weakness.  Despite that she also said that stocks were elevated because of the poor returns on interest rate holdings such as bonds. Which seems to us to be guidance that stock market returns will be good.

But the real question is why the Fed is using words between meetings to steer markets.