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A funny thing happened on the way to recession.(The Economy)

AH, SPRING! RENEWAL AND growth are in the air, or perhaps "Hope Springs Eternal" is a better way to describe recent economic and financial market trends. Whatever the case, the fixed income and stock markets are revealing a bit more confidence and risk taking.

According to the American Association of Individual Investors, small investors are showing a lot of confidence in stocks, if not their own future job prospects. The investor confidence index has rebounded smartly since March 14, 2008, the day Bear Stearns collapsed.

More signs of healing come from the narrowing spread between high-yield corporate bonds and the 10-year Treasury yield (see chart). Even bond ...

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