There are more signs the economy is picking up from the labor productivity report, which surged after a three consecutive month slide.   The 3.1 headline reading was less than the 3.3% consensus, but wages continue to come on strong.

Animal Spirits

More signs of anticipation the economy is going to soar gives the economy a great chance of actually soaring.

The IBD/TIPP economic Optimism Index surged to a ten-year high reading of 54.8 in December, up from 41.4 in November.   It’s interesting that the high reading for this report came back in March 2002, just six-months after the 9-11 attacks, as the nation rallied together in a manner not seen in a generation.   American optimism about the nation six months from now increased at an even faster pace.

There is a chance of becoming overconfident, but I think that’s the lesser of circumstances considering the woe-is-me dark cloud that has haunted the nation for years.  

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