We Still Have to Shake the Tree
Some good news for the economy is appearing and more will be needed as a slow solid recovery gets established. The bounce rally in the markets over the past few days has been strong as have all the bounces over the past 18 months. As of 9:00 AM today it is probably over. The reflation mentality still overpowers the market. The fact that this aspect of the economic recovery off the March 2009 low is overwill be a shock to the market in general. Gold versus everything else is the indicator to watch as its decline will set up the clean-out phase before real recovery can begin.
Yesterdays column by David Leonhardt in the NYT is a good read in these times of Tea Party radicalism. See here: