“Fiscal stimulation is hitting the gas, which is driving the economy forward into the capacity constraints,” Mr. Dalio said. At the World Economic Forum last month in Davos, Switzerland, chief executives were remarkably optimistic about their own businesses and the economy. “Optimism about global growth is disturbingly high at Davos,” Scott Minerd, the chief investment officer of Guggenheim Partners, told Reuters. “While I am of the opinion that the global economy is gaining momentum, I always find it discomforting when virtually everybody shares the same opinion. My fear is that that economic optimism is spilling over into global equities, which will lead to a mania in stocks.”For now, that fever may be breaking, but it is likely to be only temporary.

Source: New York Times February 06, 2018 01:22 UTC