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THE ECONOMIST: Stock Market Investors Are Way Too Optimistic

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Stockmarket investors are more optimistic than the fundamentals warrant

EQUITY markets finished 2013 with a bang, with the S&P 500 index delivering a return to investors of more than 30%, once dividends are included. And investors' optimism appeared to be borne out by trends in the American economy, the world's largest, as third-quarter growth figures were revised higher on December 20th to show an annualised gain of 4.1%...

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