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The stock market rally has been due to the Fed's monetization and the subsequent flow of liquidity into financial assets.
There is no recovery in the real economy, because there has been no genuine reform of the financial system or rebalancing of the distorted US economy.
The US stock market as deflated by gold has never really recovered from the financial crisis. This is a better reflection of the real economy in which unemployment and underemployment is running at the 17+% level.
The only progress we have seen in stocks is due to the monetary expansion of the Federal Reserve balance sheet. And most of that expansion has been channeled to the financial sector where it is being consumed by bad debts, enormous personal bonuses, and speculation.
