How Yellen Sent the World to an All-time High

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June 18 (Bloomberg) -- Janney Montgomery Scott's Mark Luschini and Green Square Capital Management's Lincoln Ellis discuss the market's reaction to Federal Reserve Chair Janet Yellen's news conference. They speak with Trish Regan and Jonathan Ferro on Bloomberg Television's "Street Smart." (Source: Bloomberg)

She was sounding more optimistic.

The economy will be good enough see -- shape support evaluations.

What about an asset bubble?

We could see a replay of what we saw before.

If you look at how investors allocate using traditional asset classes, are -- they are favoring equities because there is no other game in town so we have heard about the incident or keyword time being reiterated.

What is specificity end zone qe.

As a consequence, equity prices are destined to go higher.

They take on bubble characteristics.

If you look at the benchmarks, the average stock is not performing as well as the headline benchmark.

Many managers are going to be desperate to put money to work.

What is that level?

People are pointing to 20,000 will stop we have a long way to go.

If you look at the spectrum, equities and tend to be the only game in town of stop where you will find the bubbles is in the shadow areas.

Private equity.

We have seen valuations and activity that are read active of rich valuations.

They are very rich valuations.

If this trend continues, that is where you will see it will stop you have economist he other day saying that they would see growth.

That might be optimistic.

You might be able to justify it.

It is a record low.

You have to justify that.

You cannot justify it without the big being in the game.

I want to know what stocks are hot today.

Here's the point.

It is what she didn't say.

They people anticipate that she is coming there to take some of the profit out of it.

She back down.

She did not do it.

Was not overly dogmatic.

She said that we will accelerate.

It is predicated upon these the economic activity.

They took the view that they would not be hardliners.

We start raising interest rates.

Would listen to what she had to say.

Take a listen.

The committee believes that economic activity is rebounding.

It will continue to expand at a moderate pace.

Your reaction?

It will expand because their headwinds.

There are high levels of debt.

There are large structural problems.

It will impede it from hitting that growth.

That would be stellar given the kind of challenges that this economy has.

And the labor situation.

When will we see inflation.

When will we see that participation rate shrink?

We have had so many people say that they have had enough.

Can i say quick thing?

She made a clarifying statement today.

Part of it is demographic.

There used to be a time where the participation rate was a bad thing.

People had to work to support a household of stop we are worried about that coming back down to stop it is structural and cyclical.

It has to take time to work itself into equilibrium.

What can the fed do about it?

Probably nothing.

It is cyclical.

They have to back down of stop they have to be open-minded with their commitment.

They did a study that showed that two thirds of the decline in the participation rate was due to baby boomers retiring stop a third of it was due to discourage workers leading the workforce.

Maybe the metric is not as a are made in identifying the amount of lack -- lack -- flack.

Greg yellen seems to be talking less to bernanke about the role

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