Thursday, March 25, 2010
After some setbacks in January and February which led the market to question the durability of the recovery that started last summer, unemployment claims have resumed their downtrend. The recovery is still underway, even though progress on the labor front remains painfully slow. Markets have been climbing walls of worry, and each worry—such as the January upturn in claims—has been resolved satisfactorily, allowing equity prices to march slowly higher.
Expect this process to continue. The recovery in equity prices is based primarily on mounting evidence that the economy's recovery is genuine, albeit less than dramatic.
Posted by Scott Grannis at 9:12 AM