Tuesday, February 22, 2011
These two charts (Consumer Conference as measured by the Conference Board, and the Richmond Fed's Manufacturing Index) are not so much leading indicators of improvement, but rather coincident indicators that things have improved quite a bit over the past several months. That's not news, but it's reassuring to see. Improvement in a broad range of economic fundamentals will help sustain the market as it worries about mideast political turmoil and the rising price of oil (Arab Light today is trading at $105, its highest level since Aug. '08). Although we may well see a further correction here, I doubt that mideast troubles are enough to derail the rather strong improvement in US fundamentals.
Posted by Scott Grannis at 8:28 AM