'Goldilocks scenario' likely to propel stocks to another high

US STOCKS should reach more record highs this week as the ideal environment for stocks that central banks arranged this summer looks set to continue into the autumn.

This environment, often called the "Goldilocks scenario", is one where the coast is clear on both the economic growth and Federal Reserve fronts, with no danger of recession or rate increases.

The only thing that could put Goldilocks to flight would be a change in tone from Fed chair Janet Yellen, who will speak on Friday at the annual central bankers' conference in Jackson Hole, Wyoming. Investors are counting on Ms Yellen to say that the timing of a rate hike is still uncertain.

The rally resumed last week after minutes from July policy meeting showed more resistance to hikes this year than investors had bargained on. The odds of a rate hike this year are now less than one in two, according to Joe Kinahan, chief derivatives strategist at TD Ameritrade. To Mr Kinahan, a hike seems even less likely t…