Yellen’s “Irrational Exuberance” Moment Arrives As She Pops Momo, Biotech, Social Media Bubble
by Tyler Durden
ZeroHedge.com
07/15/2014
“… signs of risk-taking have increased in some asset classes. Equity valuations of smaller firms as well as social media and biotechnology firms appear to be stretched, with ratios of prices to forward earnings remaining high relative to historical norms. Beyond equities, risk spreads for corporate bonds have narrowed and yields have reached all-time lows. Issuance of speculative-grade corporate bonds and leveraged loans has been very robust, and underwriting standards have loosened. For example, average debt-to-earnings multiples have risen, and the share rated B or below has moved up further for leveraged loans.” – Janet Yellen
The Rest…HERE
