A Tale of Two Economies
Would the real economy please stand up?
Would the real economy please stand up? Is it the economy envisioned by the Federal Reserve characterized by deflation, high unemployment, and declining growth in business spending? Or is it the economy distinguished by a whopping 2% increase in durable goods excluding transportation and a 0.3% increase in the Conference Board's Leading Economic Index?
Credit tried its best to widen out last week after the Fed released its statement, but regained any lost ground Friday after the durable goods report. Once the market digested this news, it took off like a rocket and never looked back.
David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.