alex, "real economy"? the market moves on "corporate accounting" ie real earnings.
there is no doubt that as it stands today the recovery is without increased employment and without a solid rise in production, but conversely inventories are down so there should be higher factory utilization in the near future. retail sales are flat rather than decreasing, housing starts bottomed out at the end of 1Q and are now trending upwards.
earnings are improving for the simple fact that companies are lean and are conducting business more efficiently. that does not bode well for out of work employees in the short term, but it does bode well for the company's stock price as the price is a reflection of their future earnings, which as I noted are trending up.....
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