Yellen Warns Against Biotech
Yellen said that while there are early signs of an inflation increase, the Federal Reserve is not pushing up their plan for raising interest rates. This change is still scheduled for the middle of next year. She did note this could change, "with interest rates rising sooner and faster, if data show labor markets improving more quickly than expected."
She also warned about the biotechnology and social media fields. Their stocks were particularly shaky after the policy report came out in full. In Yellen's report, she writes,
Valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year."
take care..