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Economy

Today's rational exuberance

A 'temporary bubble' is maturing into an enduring 'structural expansion'

| China
There may be plenty of road ahead for economic growth, including in Asia.   © Reuters

With share prices around the world setting new records almost daily, it is tempting to ask whether markets have entered a period of "irrational exuberance" and are heading for a fall. The answer is probably no.

What many analysts still see as a temporary bubble, pumped up by artificial and unsustainable monetary stimulus, is maturing into a structural expansion of economic activity, profits, and employment that probably has many more years to run. There are at least four reasons for such optimism.

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