Financial Conditions: Back to Normal

Includes: AGG, DIA, SPY
by: Calafia Beach Pundit

Today the Bloomberg index of financial conditions moved into positive territory for the first time since July 2007. This ranks as of the best indicators of a V-shaped recovery. (Click chart to enlarge)

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.

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