Fed Comment Spooks Markets

Big Picture

May 1, 2015

A comment by US Fed Chairwoman Janet Yellen about stock valuations was the news-making event of the week as it tapped into lingering fears the current bull market may be getting ahead of itself. Yellen said stock valuations were “quite high” at International Monetary Fund headquarters Wednesday. That rattled US, European and Japanese equity markets which sold off before paring losses by Thursday close. Canadian equities got a jolt of their own but for a different reason; a surprise win by the NDP party in Alberta whose policies may crimp energy profits.

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