So much can change in two years.
On July 15, 2014, in the Fed’s biannual report on Yellen’s Congressional testimony, the US central bank had its first Greenspan moment when it duly warned 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.’
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Did we say two years? Make that three months: just this past June, the Fed’s monetary policy report once again warned that valuations pressures “rose for a few asset classes” as “forward price-to-earnings ratios for equities have increased to a level well above their median of the past three decades.”
This post was published at Zero Hedge on Sep 24, 2016.