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Yellen's remarks give the green light for more stock gains, say analysts

Published on Jun 20, 2014 8:21 PM
Federal Reserve chief Janet Yellen answers reporters' questions during a news conference at Fed headquarters on June 18, 2014 in Washington, DC. -- PHOTO: AFP

NEW YORK (REUTERS) - Federal Reserve chief Janet Yellen signaled that rational exuberance is just fine.

That, at least, is how some of America's largest money managers interpreted her comments on Wednesday suggesting interest rates will remain low through 2016.

It reinforced their views that easy money means the US stock market rally has further to run despite notching a series of record highs already this year. That could easily put the S&P 500 benchmark on track to surpass 2000 for the first time, and to do so well before the end of the year.

Such a gain for 2014, after a 30 per cent rise in 2013, would surprise those who worried that stocks might be getting overvalued and were due for a sizable pullback.

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