The sentiment sweeping across markets is that the Federal Reserve is done raising rates and that inflation is tamed. Since Oct. 13, we have seen a surge in the stock market. The “Santa Claus rally,” indeed, is in full swing.
I think it’s a bit of what former Fed chairman Alan Greenspan might have called, “irrational exuberance.” If you were paying attention in the mid-1990s, that expression should give you a chuckle.
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