When Janet Yellen testified before the Senate last week, she inadvertently let slip a major clue as to where the real money will be made over the next year or so. And we're not talking about the record stock market highs, either. Knowing how to interpret this single phrase is the key to unlocking a $2.5 trillion market.
Janet Yellen 2013
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- Deflation Is Coming (and It's Not What You Think)
- The First Thing Yellen Should Do to Save America
- Janet Yellen as the Next Fed Chair: What That Means for Markets, Economy
- Four Reasons the Next Fed Chairman Will Fail
- All Things Fed: Keith Fitz-Gerald on Janet Yellen and Today's FOMC Meeting
Be careful out there.
The stock market rally that started in March 2009... The one that's taken us out of the Great Recession and to new highs... The rally that's driving sentiment indicators of people who benefit from rising financial assets directly, peripherally, or because they hope all boats rise with the market...
The rally has never been loved.
The thing is, equity markets don't need love to go twice as high from here, or three times as high in the next 20 years. If they get what else they need, they'll keep going higher.
We could be on the verge of a generational bull market. That's if deficit-plagued, interconnected global sovereigns deleverage and, at the same time, re-capitalize middle and rising classes by making "recourse-sound" capital available and simultaneously reconstituting entirely the notion of taxation.
Too bad the likelihood of that happening is somewhere between slim and none.
That's one reason why I'm an increasingly reluctant bull.
But there's another reason too.
How do you thank someone who has taken you from crayons to perfume? It isn't easy, but I'll try...
- Lulu, To Sir, With Love (1967)
There is so much to say about the United States government not defaulting.
I'd like to start with a thank you.
It isn't easy, but I'll try.
Thank you, Congress, for showing the world there's nothing wrong with the full faith and credit of the United States... and for showing the world that having full faith and credit in the United States government is a total bust.
An extension? Really? So, we go through this again in a matter of weeks?
But let's move on. Let's talk about Janet Yellen. She's far more relevant.
She's about to become the most powerful person in the United States - in the entire world, for that matter.
Now that President Obama has officially nominated Janet Yellen to be the next Fed chair, there are a few things you should know about her. For instance, she was the overwhelming choice of both Congressional Democrats and Wall Street bankers. Get ready for this:
As the end of Federal Reserve Chairman Ben Bernanke's tenure nears, pundits are falling over themselves trying to predict who President Obama will pick to succeed him. Little do they realize it doesn't matter. The next chairman will be powerless against these four economic realities...
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." today to discuss this week's FOMC meeting and Janet Yellen.
On Monday, Larry Summers announced he is dropping out of the candidate list to replace Ben Bernanke and become the next Fed chief. Next in line for new Fed chief role is Janet Yellen.