Well this certainly doesn’t jibe with what the we-have-to-stop-spending-or-we’ll-kill-the-market crowd keeps telling me.
The Dow Jones Industrial Average closed at 10,428 Monday, finally breaking back into positive territory for the year. At its low on 7/2, the market was down 7.1% but is now up 0.9% YTD. Since 1962, there have only been ten years where the DJIA has been down more than 5% at its low and has recovered to cross back into the black for the year.
Now, maybe I am crazy, but could it be that economists have been right all along and, perhaps, that they know a little more about what works than do politicians (of either party) who are more concerned with their own political gain than with the long-term health of the economy?