Janet Yellen Panics the Market - The Daily Reckoning
Janet Yellen Panics the Market Like a squall out of a clear sky… Janet Yellen sent investors under the awnings Tuesday: “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat.” In reminder: Falling rates generally equal rising stocks. Rising rates generally equal falling stocks. Ms. Yellen’s rains gave the Nasdaq a quick 300-point drenching. That is because many technology stocks are “growth” stocks. These stocks have grown the stock market into a towering oak. Growth stocks are uniquely sensitive to rising interest rates. Explai...
Source: dailyreckoning.com