Traders, who would formerly have taken the precaution of reducing their commitments just in case a reaction should set in, now feel confident that they can ride out any storm which may develop. But more particularly, the repeated demonstrations which the market has given of its ability to 'come back' with renewed strength after a sharp reaction has engendered a spirit of indifference to all the old-time warnings. As to whether this attitude may not sometime itself become a danger-signal, Wall Street is not agreed. The economy is showing secular productivity growth of a magnitude not seen in decades.
Inflation remains under control.
The U.S. boasts budget surpluses as far as the eye can see. The build-out of the Internet, so rich in promise, is still in its embryonic stages. The stock market excesses of early this year have largely been purged from the system, without exacting any systemic damage. In short, the Goldilocks economy is alive and well and the bull rules. In many ways this has been the most remarkably cheerful summer in recent financial history.