Overnight Wall Street rose to a fresh record high on investor bets the Federal Reserce will cut interest rates again next week.

Why? Crucial inflation data released show the US CPI (Consumer Price Index) at 3 per cent.

But Oxford Economics thinks the market is looking at the data though rose-coloured glasses.

“Future rate cuts are therefore much more likely to be driven by the outlook, which we think justifies a more gradual pace of easing,” it says.

The Bank of America goes further, suggesting markets are far too sanguine about the future.

It is a hard line to swallow for conservative investors but, Bank of America’s Ed Yardeni writes: “There are bubbles out there. They will burst because that’s what bubbles do.”

Gold, it is argued by some…