Central Bankers Keep the Pedal to the Metal in May

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  • Beginning to normalize the policy rate should actually bolster confidence in the economy and the markets and allow us to once and for all leave the Great Recession behind.
  • M&A activity has been red hot in 2015, suggesting confidence in executive boardrooms.
  • Earnings surprised mightily to the upside in 1Q, but 2Q expectations remain dim.
  • While the math of rising rates discounts financial assets, the growth that prompts the rate hikes should be far more important in sustaining this bull market in the long run.

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