An “optimistically cautious” forecast for the year ahead

Not just economists but also market players have returned from the holidays in a bit a snit, realizing that the stock market rally of late last year might continue — but also might not. Also, institutional investors locked in their gains for the quarter that ended over the weekend, and a new quarter brings both opportunities and dangers. Analyst Susan Schmidt is head of public equity at the State of Wisconsin Investment Board and was struck by a quote this morning in a speech by the President of the Federal Reserve in Richmond, Virginia.