Yellen unbubbles tech

Yahoo:

The Federal Reserve on Tuesday voiced concern about stretched valuations in certain corners of the U.S. equity markets, including the small cap, biotechnology and social media sectors.

The unusual comments from the Fed's monetary policy report - the first time in 14 years that the Fed has commented specifically on valuation of a particular equity sector - that accompanied Fed Chair Janet Yellen's semi-annual testimony to Congress, hit stocks in riskier sectors of the market.

Yellen said in remarks to the Senate Banking Committee that valuations across equity markets remain generally in line with long-term averages, but the Fed's report said the forward price-to-earnings multiples for smaller companies and those in the biotechnology and social media sectors appear "high relative to historical norms."

Facebok unbubbled!