Yellen sticks with company line in Congressional testimony


"Looking ahead, I expect that economic activity will expand at a somewhat faster pace this year than it did last year, and that the unemployment rate will continue to decline gradually, and that inflation will begin to move up toward 2%," says Janet Yellen in prepared remarks in front of Congress' Joint Economic Committee.

"We recognize that much more must be accomplished," she concludes, promising that interest rates will remain low for an extended period of time.

Treasury prices are bopping around as she speaks, but remain pretty much as they were prior to the testimony, the 10-year yield up one basis point at 2.60%.

ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, ZROZ, SBND, TLH, DLBS, VGLT, UBT, TLO, TENZ, LBND, TYBS, DLBL

Live feed here - Q&A should start soon.

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Comments (4)
  • vanebfbc
    , contributor
    Comments (160) | Send Message
     
    Sounds like she's trying to calm the market down. It's really ridiculous how one person has far more influence in the market than anything else.
    7 May 2014, 10:41 AM Reply Like
  • MEKhoury
    , contributor
    Comments (406) | Send Message
     
    Capitol*
    7 May 2014, 11:10 AM Reply Like
  • Hank890
    , contributor
    Comments (2260) | Send Message
     
    Her spiel really is the party line. I think Bernanke may have been somewhat more honest. It worries me that she may be more politically motivated than clear eye'd economist.

     

    Interest rates will rise, of course,....but how fast, and when does the inflection happen, that is the question. I am staying with short to intermediate duration---and prefer investment grade to high yield, even though long duration has performed well the last 4-5 months--those gains cannot last too much longer.

     

    As to equities,...not everything is over-bought. But I am staying clear of the obvious momentum plays---staying out of FB, GOOG, YHOO, Twitter, LKND, NETFLIX, Amazon, TSLA, SWIR, HYGS,....will not touch Alibaba with a 10 foot pole. MXWL is probably not going to sell much, if anything, to TESLA, at least not in 2014.

     

    IBM and AAPL are in recovery mode, and have not been tech momentum plays in the past 6 months, which makes them safer opportunities at the moment.

     

    Eric Holder has signaled he intends to punish the large money center banks, at least until the election. Certain well managed Regional banks may be a clever buy, if rates rise later this year. Insurance sector may offer some bargains (I am long AFLAC); I always prefer the prudent dividend payers.

     

    Domestic Energy stocks have a way to run yet--I especially like the growing dividend energy stocks (COP) and MLPs. Many Commodities are very over-sold imo, but may not be ready to turn around for a while. Silver is quite low at the moment--it will not remain so forever.

     

    Utilities have been rising from a low base (not popular in 2013) the past 8 weeks or so,...still a few decent entry points there (AEP, EXC, PEG, ED, PPL, etc....) imo. Again, I hold these for the steady dividends, and accumulate when the prices are low.

     

    EU and EM issues are more vulnerable to the Ukraine situation than US plays. The Chinese non-bank debt balloon situation concerns me---and I want to stay out until this matter is a bit less volatile. EM debt has strengthened in the last quarter.
    7 May 2014, 01:30 PM Reply Like
  • jimdog
    , contributor
    Comments (45) | Send Message
     
    Yellen and the FED have said this now for 5 years that rates will continue to be at zero. Don't you think by now we can call a spade a spade and say the FED has failed in the economic recovery. That they have just propped up a market that will soon plunge!
    7 May 2014, 05:13 PM Reply Like
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