Federal Reserve

'Indications of irrational exuberance'

Outflows of €449m this week

Short US equities

Entering 2017, we expected a stockmarket 'melt-up' to the 2,550-2,600 level on the S&P 500 - a move we thought might run into trouble by late summer.

Yellen has served since 2014

‘Extreme expense’ of equity valuations

Moved into short-duration high yield

Follows previous criticism

Rising rate environment

We think there is scope for equities to keep climbing from here, and it is all down to the longevity of the business cycle, writes Luca Paolini, chief strategist at Pictet Asset Management.