Just because stock valuations are high doesn't mean stocks are overvalued, Yellen says

Federal Reserve Chairwoman Janet Yellen, asked about record levels for stocks, acknowledged that price-to-earnings ratios are at the high end of historical levels. But with low interest rates, solid economic growth, low inflation and balanced global economic risks, that doesn't mean they're overvalued, Yellen said. "Economists are not great at knowing what appropriate valuations are. We don't have a terrific record. And the fact that those valuations are high doesn't mean that they are necessarily overvalued," she said at the press conference.

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