Are we in a recession? Is the housing market affecting our economy?

Well, the time has come for a new post. And although it has been several months since I last updated this blog, I wanted to write a post that I felt was crucial. Recently, word has spread that 1) We are almost in a recession and 2) The housing market slump is affecting our WHOLE economy. I would like to address all my remaining readers that I have heard many comflicting reports, therefore, I have to present my opinion based on the data I have received. When I picked up the Los Angeles Times 2 or 3 days ago, there were UCLA forecasts claiming that the we are nearing a recession and that the housing market is one of the main causes. But then, just yesterday, I pick up my newly-delivered issue of Money magazine and it says that the markets are actually undervalued despite their bullishness and that the housing market slump will probably continue for another year or so but then I read that Ben Bernanke thinks that our economy is fine. So I have concluded that it doesn't matter what any university including UCLA thinks about our economy when the Federal Reserve Chairman himself, Ben Bernake, claims that our economy is doing well. I also noticed that the S & P 500 needs to go up 18% until it more or less reaches the average value in terms of P/E and what not. And by the way I also saw a tiny article about how the defense stocks are still rallying throughout the year and don't forget to profit from earnings and acquistions. So until nest-time, good bye.

Sincerely,

Your Stock Market Advisor