Yardini:

Presumably, among the risks of QE are speculative debt-financed asset bubbles. However, last week, Janet Yellen said, “At this point, I don't see a risk to financial stability, although there are limited signs of a reach for yield.” She said that based on current valuations, stocks aren’t “in territory that suggest bubble-like conditions.”

I see more bubble-like conditions than Janet Yellen does. Her lack of concern may be justified currently, but by expressing it she increases the odds of triggering melt-ups in asset markets, especially if she turns out to be even more dovish than Bernanke, as I expect. Consider the following:

Continue...

ADD a Disqus Comment here

Check out the member blogs, videos, and discussions http://12160.info/