Janet Yellen’s much-anticipated (by some) testimony in front of Congress was largely a nonevent, as she said pretty much what she has been saying, namely that the Fed thinks it will raise rates in June, but that decision is data-dependent. Of course, she didn’t say that if the stock market were to crack she would scramble to move in the other direction.
“Buy The F**king Dip” Setting Up The Mother Of All Stock Market Crashes
However, a cracking stock market has not been the Fed’s problem, as the market has climbed relentlessly, even without QE. Some have concluded that, as a result, the market is ready to stand on its own and the economy is about to get better. To me, it only increases the risk that the accident will be bigger and more violent once it occurs, but obviously that is not going to happen immediately, as the indices have just hit new highs.
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