Markets are firmly in the red today.  There are many potential reasons including doubts about QE2, Ireland, etc.  However over the past few months the stock market has been on a tear.  While it is difficult, maybe tuning out the din of the financial media can help us come up with some explanation for this.  Maybe it is as simple as ‘the economy is getting better.’  Although the economy has a great deal to do to recover, especially on the jobs front, the stock market may simply be reacting to a increasingly positive news front.  A closer look at the retail sales data is another sign that the economy (and hiring) is on an upward path.  In today’s screencast we take another crack at the optimist’s case for the economy.

Items mentioned in the above screencast:

“I’ll just say this, in talking about markets, Occam’s Razor goes a long way.”  (Joe Weisenthal)

“The principle of Occam’s Razor recommends selecting the competing hypothesis that makes the fewest new assumptions (aka postulates, entities).”  (Wikipedia)

Fundamentals drive the market, but make for lousy TV.  (ValuePlays)

14 reasons things are better than you think.  (Crossing Wall Street)

The V-shaped recovery in manufacturing.  (Money Game)

Seasonal hiring off to a fast start.  (Calculated Risk)

Daily chart of the SPDR S&P Retail ETF (XRT).  (Finviz)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.