Who To Believe

Who do we believe on the recession?

Posted below is an optimistic assessment as in the recession is on the way out, things are getting better.

Reuters: U.S. CPI, production data point to easing recession

"The bears are going to look at this and say we have deflation on the way and a decelerating economy, but I don't think that's the case. I think this will be viewed as a healthy contraction that will lead to a sustainable recovery..."

I posted the next one earlier in the day but the 180 degree swing in sentiment is stunning.

Reuters: Stocks still face deflationary collapse: Prechter

...predicted this week that U.S. equities may plunge to half their lows hit in March as a deflationary depression bites.

Do we isolate the stock market from the overall economy in order to mediate these two points - and how exactly does that work? We are hearing deflation is coming from some and inflation is coming from others. We are either imploding or exploding.