“Ignorant households” Who Have "Failed To Behave Rationally" Help Rally Continue

Is uncertainty actually a good thing? A look at what impact it has on economic sentiment

If the world functioned according to economic forecasts, last year would have possibly have been one of the most disastrous years for the stock market and global economy since the financial crisis. Heading into Brexit and the US Presidential Election, economists were predicting economic turmoil if the UK voted to leave the EU and the US voted Trump into office. If either of these scenarios unfolded, analysts proclaimed, uncertainty would dominate the business environment putting the brakes on investment and economic growth.

These forecasts are now long forgotten and thankfully, they have, so far, proved to be incorrect. This poses an interesting question: so...