Ever since Donald Trump’s surprise election victory on Nov. 8, financial markets have been telegraphing a collective sense of optimism about future economic growth. The major U.S. stock indexes set new records, the dollar soared and the yield on Treasury securities rose across the curve.
Before you get too excited about the prospect for the economy to reach escape velocity after seven and one-half years of 2% growth, the financial press is warning that such optimism may contain the seeds of its own destruction.
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