What do investors expect from a post-pandemic economy?

They generally seem quite optimistic. Stocks are hitting records. Meanwhile, yields on U.S. government bonds and certain derivatives are suggesting the economy will be strong enough for the Federal Reserve to start raising short-term interest rates by 2023 and keep going for a couple of additional years.

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In essence, investors are betting that a combination of government stimulus and coronavirus vaccines can drive a quick return to the economy that existed just before the pandemic. Back then, a…

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