Stocks |

Yellen: Agonizing to Watch

In a speech at the University of Massachesetts last night, Federal Reserve Chair Janet Yellen said that the prospects for the U.S. economy “generally remain solid” and that the central bank is “on track” to raise interest rates in the months ahead.

Then dehydration is said to have caught up with her and she cut her speech short:

She received medical attention then resumed her schedule as the stock market ripped higher, traders concluding that she was just fake vomiting, something that Stephen Colbert popularized on his Comedy Central show and brought to CBS with Emily Blunt the other day.

Shkreli Makes a Splash

Hedge fund manager turned pharmaceutical company wunderkind Martin Shkreli made a grand entrance onto the national stage yesterday by defending his company’s decision to raise the price of an AIDs related drug from $13.50 per pill to $750.

His actions prompted a tweet from Hillary Clinton that sent Biotech stocks plunging (no doubt endearing himself to other Biotech CEOs) while generating headlines like these:

Not sure if that old saying “any publicity is good publicity” applies in this case.

Investors Hate Stocks?

According to the graphic below from this Bloomberg story, investor sentiment has recently plunged along with stock prices, but, “fret not” they say, as big gains normally await those who dare to invest money after such an historic loss of confidence.


It’s hard to know what the correct price of anything is these days, what with the central banks of the world having their heavy thumbs on the scale and investors never knowing if or when they’ll relent, last week’s Fed no-decision being the latest example of such.

The Fed Decision in Two Minutes

This Bloomberg video of some of Fed Chair Janet Yellen’s prepared remarks during her press conference yesterday was popping up all over the place this morning. It’s actually the first four pages of a six page opening statement(.pdf) available at the Fed’s website.

It really just boils down to about the last 10 seconds – central bankers’ fear of deflation:

… in light of the heightened uncertainties abroad and a slightly softer expected path for inflation, the Committee judged it appropriate to wait for more evidence, including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2 percent in the medium term.

Shiller on Bubbly Markets, Investor Psychology

Yale Economist, Nobel Laureate, and Bubble-Spotter Extraordinaire Robert Shiller comments on how, even after the late-August correction, the stock market remains kind of bubbly and that investor psychology could play a big role in exacerbating any renewed decline (perhaps prompted by the Fed) now that everyone’s back from their summer vacations.

Also at CNBC, see Robert Shiller: THIS is the sign we’re in a bubble – apparently being super-confident in the market while ignoring valuations can be a bad thing.

Page 1 of 6812345102030...Last »
© 2010-2011 The Mess That Greenspan Made