Despite positive data US may not be out of the economic woods

With fiscal and monetary stimulus appearing from all directions, the US GDP hit a positive 3.5% in Q3 2009, most likely indicating the end of the recession.

However the strength of the recovery remains uncertain as various stimulus programmes that boosted consumer demand for autos and housing, in conjunction with significant government spending, provided a meaningful portion of the gain. Like a diver returning from the depth of an economic abyss, the US economy needs to ascend at a measured pace to avoid negative side effects that could give the upward slope of the equity market a case of the bends. The housing market is showing continued signs of recovery as the S&P Case-Shiller 20 city house price index looks to have bottomed in April o...