Yellen's promise to keep printing money sends stocks soaring.
"U.S. stocks surged on Tuesday, with the Dow Jones Industrial Average rising triple digits and the Nasdaq Composite turning positive for the year, as Federal Reserve Chair Janet Yellen reassured Wall Street that the Fed would continue the central bank's policy of providing monetary stimulus to bolster the economy. "
This shows how much the stock market is divorced from reality.
Scary chart shows amazing parallel between 1928-29 stock market and current stock market.
The increments aren't to scale. The 1929 crash wiped out nearly halve the value of the market. If the same happened now, that would drop the market to about 9000.
"In an email earlier this week, Kass wrote of the parallels with 1928-29: “While investment history doesn’t necessarily repeat itself, it does rhyme.” And, based on a number of indicators rather than just this chart drawing the 1928-29 parallel, he believes that “the correction might have just started.” "
Which is what I recently wrote.
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