Former Federal Reserve Board Governor Kevin Warsh on Monday cautioned against the widening state of herd mentality as the stock market rallies and the economy remains on track for steady expansion. There is a uniformity of opinion about the state of economy, inflation and growth, he said, speaking at the annual Sohn hedge fund conference in New York. The last time he witnessed such a consensus was about 10 years ago and that's enough to make him pause. He also warned that asset prices are not ready for a downside shock and investors should watch corporate capital expenditures for signs of a flagging economy.
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