Yesterday, the ISM Index (Institute for Supply Management) came in stronger than expected. In other words, manufacturing is continuing to improve, four months in a row. In addition, orders are growing faster than inventories, suggesting even more future growth in manufacturing.
Also, it was announced that occupied office space increased for the first time in three years, signaling better health in commercial real estate than expected.
A few years ago, we were desperate for "green shoots" of economic hope. Now, that is almost all we can see.
Plus, after extending the tax cut and other signs of bi-partisanship, there is some faint hope that Washington is not completely impotent. As a result, the Dow was up 93points yesterday, to a 28-month high. Can you still see the market lows of March of 2009 in your rearview mirrow?
But, don't forget we are still 16% below the market highs in 2007.
