Amy Domini: Back to Basics

By Amy Domini, Huffington Post

We have seen some strong advances in stock markets around the world these past few weeks. The Standard & Poor's 500 Index has risen 50 percent since its low on March 9th. It's up over 12 percent since the start of the year.

A dramatic rise of such proportions leads me to ask, what else can go right? Is there any more good news out there? First, recall the news of the past few weeks.
• The Federal Reserve releases charts intended to show the probability of a recession in the following twelve-month period. During 2008, it got just above 40 percent. At the end of July 2009, it was 0.09 percent.
• Our National Unemployment Rate decreased in July from June (to 9.4 percent from 9.5 percent) which meant that July saw the fewest job losses since August 2008.
• The U.S. Institute of Supply Management Manufacturing Index is back to where it was in August 2008, and if the July figure were to be annualized, it would translate into 2.4 percent annual growth in Gross Domestic Product.
• July's Worldwide Institute of Supply Management Manufacturing Indices were also strong with China at a 12-month high, U.K. at a 16-month high, and the Euro Zone at an 11-month high.

And then there is some less exciting, but going the right way, news.
• The Case-Shiller Index calculated from data on repeat sales of single-family homes using an approach developed by economists Karl Case, Robert Shiller and Allan Weiss, have shown a slower decline...

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