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Traders work on the floor of the New York Stock Exchange, October 21, 2013.
Traders work on the floor of the New York Stock Exchange, October 21, 2013.
(BRENDAN MCDERMID/REUTERS)

If the U.S. economy is so rosy, where are the bulls?

After a 30 per cent rally in U.S. stocks last year, caution is the operating mantra among most market watchers in 2014. But the overall view on the economy is another matter: Here, optimism is breaking out just about everywhere you look.

The latest bout comes from Paul Dales at Capital Economics, who argues that previous mid-year disappointments – flowing from the euro zone crisis, the U.S. debt ceiling crisis and the fiscal squeeze due to lower government spending – that have slapped upbeat economic predictions are unlikely to prevail this year: “The upshot is that the headwinds are fading at the same time as the tailwinds are strengthening,” he said in a note.