The People On This Photo Have A Warning For The Market: There Is “A Build Up Of Excessive Risk”

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies, Market Commentary

The people shown on the photo below, also known as “the people in charge”…

… have a warning for the algos.
First, a step back.
Two months ago, none other than Janet Yellen warned that a bubble is forming in some equity sectors, namely biotechs and social media when the Fed said that “valuation metrics in some sectors do appear substantially stretched – particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year.”
The warning was ignored, and as a result both biotechs and social/tech stocks have soared to fresh post dot com, if not record, highs.
Then, a week ago, the central banks’ central bank, BIS, warned again of unprecedented complacency when it said there was “low volatility everywhere“, and once again reprised its warning from the summer of 2013, that there is a asset bubble, and that it is central banks policies themselves that are responsible for this.

This post was published at Zero Hedge on 09/21/2014.