The real story behind the recent stock-market rally is of a “meh” economy, not an assumption that an economic boom is on the way
The more things change, the more they stay the same. The world economy has slowed sharply, central banks are worried enough that easing is back on the agenda, yet U.S. stocks this week broke above their September high.
What gives? In a word, Goldilocks. The economy is warm enough that fears of an earnings-crushing recession have gone away, but cool enough that the Federal Reserve won’t raise rates any time soon.
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