Yesterday saw another new high for the Dow, as well as big bumps in the other indices. The only real news, and what I consider the driving factor for those highs, was that Federal Reserve Chair Janet Yellen appeared a bit more dovish in her Congressional testimony than was expected. Given the low inflation we have seen, she said, the Fed is reserving the right to raise rates more slowly than it has previously indicated. Also, no time frame was given on starting to wind down the balance sheet. The result? Stocks proceeded to rally significantly. Think about that: with no real news about the fundamentals of corporate earnings or economic growth, a hint that the Fed might raise rates a bit more slowly drove stocks up.

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