We seriously think that some analysts are overestimating the real power of Federal Reserve when they imagine the existance of an alleged “Controlled Collapse” theory…the Fed can’t control everything
When Janet Yellen started talking about the possible existence of some small market bubbles in US equities, some analysts thought the Fed was going to make a “controlled collapse” happen at Wall Street.
We actually thought the same thing, but it is now obvious that Janet Yellen can’t make the market go down in a “kind and polite” way.
Just take a look at biotechs:
As you see, the gentle way is not working.
If Yellen really wants stocks to go down (and that’s one big “if”), she should just sit down, take a deep breath and say that rates will go up way sooner than expected, as it will eventually happen.