6 reasons why stocks are still setting records and 1 reason to trim longs

1. The short-term interest rate remains close to zero. 2. Long-term government bond rates fell when they were expected to rise worldwide. 3. Reports of worldwide inflation continued...

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dowchart1. The short-term interest rate remains close to zero.

2. Long-term government bond rates fell when they were expected to rise worldwide.

3. Reports of worldwide inflation continued at very low levels in most jurisdictions. In Europe, the inflation rate is now recorded at 0.50%.

4. Central bank policies continue to be expansive. Even though the Federal Reserve is tapering, it is still expanding excess reserves and acquiring assets onto its balance sheet.

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