Is Janet Yellen The Modern Day Oracle of Delphi?

Is Janet Yellen The Modern Day Oracle of Delphi? - oracle


Wall Street likens Fed head Janet Yellen to the all knowing Oracle of Delphi. So who exactly is the Oracle of Delphi? Via Wikipedia:


"The Pythia commonly known as the Oracle of Delphi, was the name given to the priestess of the Temple of Apollo at Delphi who served as the oracle.


The Pythia was established in the 8th century BC, and was widely credited for her prophecies inspired by being filled by the spirit of the god (or enthusiasmos), in this case Apollo. The Pythian priestess emerged pre-eminent by the end of 7th century BC and would continue to be consulted until the 4th century AD. During this period the Delphic Oracle was the most prestigious and authoritative oracle among the Greeks, and she was without doubt the most powerful woman of the classical world. The oracle is one of the best-documented religious institutions of the classical Greeks. 


The name "Pythia" is derived from Pytho, which in myth was the original name of Delphi. In etymology the Greeks derived this place name from the verb, pythein(πύθειν, "to rot"), which refers to the sickly sweet smell of the decomposition of the body of the monstrous Python after he was slain by Apollo. Pythia was the House of Snakes.


One of the main stories was that the Pythia delivered oracles in a frenzied state induced by vapours rising from a chasm in the rock, and that she spoke gibberish which priests interpreted as the enigmatic prophecies preserved in Greek literature."


Janet Yellen certainly spouts her fair share of economic gibberish. 


***The Fed's rosy economic outlook is undoubtedly pie in the sky. Here's what we think would happen if the Fed raises interest rates... It ain't good.


A Truly Sad Wall Street Narrative = "There Is No Alternative To Stocks"

Takeaway: Wall Street's "there is no alternative to stocks" narrative now completely ignores crashing markets in China, Europe, and Japan.

Unfortunately the “there’s no alternative to stocks” narrative hasn’t held this year in China, Europe, or Japan – Nikkei down another -1.2% overnight taking its crash from the 2015 high to -21.7% (Japanese Gov Pension fund just lost $52B being long stocks in Q2, with the BOJ buying them!)


Take a look at Italy...



Editor's Note: The snippet above is from a note written by Hedgeye CEO Keith McCullough and sent to subscribers this morning. Click here to learn more. 

Daily Market Data Dump: Friday

Takeaway: A closer look at global macro market developments.

Editor's Note: Below are complimentary charts highlighting global equity market developments, S&P 500 sector performance, volume on U.S. stock exchanges, rates and bond spreads, key currency crosses, and commodities. It's on the house. For more information on how Hedgeye can help you better understand the markets and economy (and stay ahead of consensus) check out our array of investing products




Daily Market Data Dump: Friday - equity markets 8 26


Daily Market Data Dump: Friday - sector performance 8 26


Daily Market Data Dump: Friday - volume 8 26


Daily Market Data Dump: Friday - rates and spreads 8 26


Daily Market Data Dump: Friday - currencies 8 26


Daily Market Data Dump: Friday - commodities 8 26

Early Look

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Poll of the Day: Which Movie Below Best Captures Janet Yellen's Fed Tenure?

Takeaway: What do you think? Cast your vote. Let us know.



CHART OF THE DAY: Don't Break Out The Bubbly Just Yet

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye U.S. Macro analyst Christian Drake. Click here to learn more.


"... As can be seen in the Chart of the Day below, Forward Capex Plans as measured by a composite of the Fed Regional Surveys remains on its one-way street to lower-lows, suggesting the negative trend in investment spending is unlikely to ebb in the coming quarter(s)."


CHART OF THE DAY: Don't Break Out The Bubbly Just Yet - Capex Plans CoD2

The Big Joke: Animated Cartoon Nails Squirrely Fed

In this excerpt from The Macro Show, Hedgeye CEO Keith McCullough explains why Fed policy is a joke (with a little help from our incomparable cartoonist Bob Rich). 

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