Fed Governor Dan Tarullo once said: "Expectations fostered by forward guidance of continued low rates, may be incentivizing financial market actors to take on additional risks to boost margins, thereby contributing to unsustainable increases in asset prices and a consequent buildup of systemic vulnerabilities."
The recent bubble bursting on high flying sectors such as Biotech IBB ,Social Media SOCL , Internet FDN and other momentum stocks have confirmed his worries. They are either already broken or on the verge of breaking below their 200 day moving averages. Breaking below 200 day moving averages means they are entering bear market and prolong down turn is to be expected.
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