With the stock market currently faltering, it is instructive to look at the underlying economic data. The chart below clearly confirms that many sectors of the economy are showing a real recovery. The shaded area shows the start of the recession in December 2007, and the ensuing fall in profits, manufacturing and the like. Since then all these areas have recovered handsomely off of low readings in 2008 and 2009. To be sure, there are still problems to contend with, such as housing in the U.S. and the financial crisis in Europe. So while the road MAY be rocky ahead, the data shows a recovery well underway.

Source: U.S. Department of Commerce Bureau of Economic Analysis. Data as of 4/30/2010. All figures in $Billions.

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