Why Did Yellen Talk Up Stock Valuations Now But Not In May?

US Federal Reserve Chair Janet Yellen was recently noted for an important statement divergence. In a December 21 report, investment consulting firm 720Global.com compared Yellen’s May 5, 2016 statement that stock valuations “generally are quite high” with her December 14 that, seven months later, valuations remain in a normal range.  In a report titled “Deception,” author Michael Lebowitz accurately noted that Price / Earnings ratios rose in seven months as, oddly, interest rates also rose – two normally noncorrelated market factors. What Lebowitz didn’t highlight is the significance the broken correlations have and what might Yellen’s motivations for these statements…