Two Ways to Tell if the U.S. Economy is Ready to Get Back on its Feet
August 27, 2010 at 06:00 AM EDT
The U.S. economy has been crippled by the financial crisis. And regardless of what policymakers try to do to spur growth, it will hobble along lamely until two major economic pillars are rectified. Simply put, there's no chance that stock investors will see a healthy, long-term bull market until credit again begins to flow freely and home prices start rising. Unfortunately, neither the credit market nor the housing market is yet ready to lead a sustainable economic rebound. But knowing that these are the two legs on which our economy stands, we can effectively gauge their condition, and thus be better able to predict a stock market rally. Let me explain. To find out how you can effectively diagnose the economic recovery read on...