A lot of people are scratching their heads about this rally. The economic fundamentals have hardly changed for the better. No one says that the things are getting easier on his pocket, yet the same person is optimistic about the coming days. Almost every industry is in some sort of recession (except the faith industry - the astrologers, babas etc.), yet everyone is sure of better days just over the horizon.
Some news from Surat.
http://timesofindia.indiatimes.com/...tare-at-bleak-Diwali/articleshow/41674211.cms
Just Sharing my views
Sentiments drive the markets and not the macro/micro economics.
Because the micro/macro economics ultimately creates sentiments on the basis of which everyone trades/invests and vice-versa
Recession is not Loss of money or bad economics.
Recession is absence of positive sentiments from the investment/business community, who keep the money tightly in their pockets and are afraid of spending.
This change in thinking pattern which ultimately leads to change in economic cycle.
Posting couple of charts for references.