You wouldn’t think that the revision of third quarter GDP would be particularly noteworthy.  However it helps clarify something that has been going on in the markets for some time now, which we noted in an earlier screencast.  A look at the GDP figures and the attendant corporate profits helps explain why the equity market has done as well as it has.  Indeed a quick look at a chart of GDP shows that we are soon about to shift from recovery to expansion.  At the same time corporate profits are at a record high.  There are plenty of issues with this economic recovery, not least of which is the lack of movement on the jobs front.  However as Barry Ritholtz notes it is now time for even the most ardent economic bears to take note of the economic recovery.  In today’s screencast we look at the state of the economy.

Items mentioned in the above screencast:

3Q GDP revised higher to the dismay of Roubini .  (Bloomberg, Money Game)

Another look at 3Q GDP. (Calculated Risk)

Remember the double-dip?  (Crossing Wall Street)

Occam’s razor and the case for economic optimism.  (AR Screencast)

Seriously people, the recession is over.  (Big Picture)

Corporate profits hit a record high in Q3.  (NYTimes)

Weekly chart of the SPDR S&P 500 ETF (SPY).  (Finviz)

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