Here’s the one word in Janet Yellen’s speech that the markets should be very worried about

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The stock market has churned a bit in the last few days. Some Wall Street wags have suggested that concerns over the President’s tweet storm over the weekend, or North Korea’s missile firings, may have been behind the stall in the market.

Certainly, political uncertainty, and geo-political risk, have caused some consternation in global markets, while concerns about the pace of gains in stocks, coupled with perceived lofty valuations have also provided a mild headwind on Wall Street in the last few days.

While the market appears to be happily embracing a coming rates hike from the Federal Reserve, it seems to me that market participants may have glossed over a very important comment from Fed Chair, Janet Yellen, last Friday. Continue reading