“Apparent coordination of the Fed and the ECB to cool down the market rally”

Stock valuations “generally are quite high,” said the US Federal Reserve Chairwoman at a finance forum last week. “There are potential dangers there.”

As for bonds, we need to also watch out, since when the Fed decides to finally raise rates “term premiums could move up and we could see a sharp jump in long term rates,” she said.

Janet Yellen seems to be caught up between the economy (despite a robus April jobs report, US wages are not rising and the participation rate remains at 62.8%, compared to over 66% before the crisis) and the market rally. Easy money has fuelled asset speculators.