"Every day it seems the stock market goes up triple digits... is it now, or will it soon become a worry for the central bank that valuations are this high?"

After a bit of double talk interspersed with gobbledygook, Yellen uttered the money quote:

''There is nothing flashing red there or possibly even orange,'' on asset valuations...

Holy cow!

Surely our soon to be pensioned-off Keynesian School Marm was not thinking about the fact that the S&P 500 stood at 2662 as she spoke, which amounts to 24.9X the $107 per share of earnings posted by America's leading companies for the LTM period ending in September 2017.

That's at least a flashing bright orange light given certain undeniable realities. For instance, by any historic standard 24.9X is a super-growth PE multiple. Yet the most recent $107 per share earnings figure represents a microscopic 0.3% annual rate of gain since the $106 per share posted by the S&P 500 companies three years ago in September 2014.