Why Stocks Are Doomed Under Janet Yellen

If it's possible to be overqualified for the role of Federal Reserve chairwoman, Janet Yellen would be among the few (probably the only) who could stake that claim. Yet it seems almost inevitable that asset prices -- and stock prices in particular, as represented by the S&P 500 (SNPINDEX: ^GSPC  ) -- will take a hit during her tenure leading the central bank. In the video below, I discuss the simple reason why this is the case.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 10, 2013, at 7:43 PM, KeysBum wrote:

    WTF, Why am I paying MF to tell me to buy Stocks when this fool is basically saying run for the exits?

  • Report this Comment On October 10, 2013, at 11:44 PM, DZPM wrote:

    Comparison to Janet Yellen Ban Bernanke look hawkish.

    Go Tee Party! Down Harry Reid! Tee Party Republican is right Democrats are wrong Barack Obama & government bureaucracy spend too much money on worker expense. If I get send home from work I don’t get paid retroactive why should government employee and bureaucracy be paid, this is discrimination crime against honest worker that bear the burden to pay for everything. Barack Obama & Harry Reid are “Giant Ponzi Scheme” criminals.

    You can't be Senator or Congressman for life we need to change the low and apply the same principal for Senator and Congressman who President have to terms in the office and no one day more, if we don’t do that we will never have thru democracy.

    Ben Bernanke “Giant Ponzi Scheme” know precisely there is no exist without big Consequences so hi is stein put and will let new Chairman to deal with his mass. This is a pure crime. Scam bag is always a scam bag!

    Federal Reserve comity and Ben Bernanke “Giant Ponzi Scheme” .When we have bad economic data market is going up on speculation Fed Chairman Ben S. Bernanke will kip printing money. When we have god economic data market is going up speculation Bernanke is steel printing? This entire look like exuberance sign of market is in the crash mod and will burst 1000 down ward point any second. Bernanke ruin billions and billions of ordinary people’s lives with kipping interest zero in favor of Banks and Speculators Bernanke committed the biggest crime to humanity The Biggest Ponzi Scheme Ever. Bernanke is a Scam bag! Communist was using seam principals like Fed Bernanke (printing money for ever), and day collapsed next is USA to Collapse, because off arrogant sociopath Ban Bernanke. Printing money is poor pyramid scams, artificial unreal! Every pyramid scam crash everybody loses regular investor watch out doesn’t fall in to the trap. A record breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens. Despite "phony" signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $16 trillion federal debt and the Fed's never ending money printing. Currently, Bernanke and company is buying $1 trillion of Treasury and mortgage bonds a year. That's about $85 billion per month against a budget deficit that is about the same level. These numbers are unsustainable. And the Fed has no credible "exit strategy."

    IN Real Capitalism markets get regulated (take care) by itself, most innovative smart and honest survives; weak crooks and cheater lose natural selection. Not selection by bunch of Federal Reserve Bureaucratic crooks that favors one side or other for personal gain.

  • Report this Comment On October 10, 2013, at 11:50 PM, pksloope wrote:

    The title sounds interesting, but if I have to sit through a video, then its a no-go. Don't have time to watch, and apparently MF doesn't have time to write an article.

  • Report this Comment On October 11, 2013, at 1:27 AM, ForrestGump2 wrote:

    The headline seems to be an emotionally charged veiled attack on the President's choice to head the Central Bank. It seems by the video that whoever holds the post will preside over a decline in asset values, so to link Yellen by name is poor journalism. It seems that stock prices do not reflect the actual state of the economy and so I would expect that an adjustment is coming. Bringing asset values in line with the American economy seems like something that has to happen and Yellen may be the the best person to handle that adjustment based on her experience, intellect, education and relationship with industry. I would say that she is courageous to accept the request by the President's call to serve her country facing this looming adjustment.

  • Report this Comment On October 11, 2013, at 3:24 AM, slimfinger wrote:

    Blatant incompetence, from the opening line of the video's abuse of the term "invariably".

    Both article and video are irresponsible, and a disrespectful waste of the reader's time, for the reasons that ForrestGump2 has outlined. Possibly the author was sleep deprived.

  • Report this Comment On October 11, 2013, at 5:59 AM, neognome wrote:

    Why are gentiles never allowed to head the Fed?

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