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Nir Kaissar

Stocks Ring Confidence Bell

Lofty valuations express enthusiasm but could also signal trouble.

The Federal Reserve is all but certain to raise interest rates on Wednesday, signaling a vote of confidence in the U.S. economy and, by extension, the health of U.S. companies.

The U.S. stock market is already well ahead of the Fed. The S&P 500 is up 6.2 percent since the election through Tuesday despite near-unanimous predictions that U.S. stocks would collapse in the wake of a Donald Trump victory. The index is also up 24.2 percent since it hit bottom on Feb. 11.