Wednesday, December 23, 2009
Today the Bloomberg index of financial conditions moved into positive territory for the first time since July 2007. This ranks as one of the best indicators of a V-shaped recovery that I've seen. The financial markets have largely healed, and that is a precondition for healing to spread and normalcy to return to the rest of the economy. This is very supportive of an optimistic outlook for growth next year.
HT: Mark Perry, who has a more detailed chart of this index over the past two years.
Posted by Scott Grannis at 12:12 PM