yes elroy i read your post 10 times. (-:


Q4 rally for stocks preceded all of the positive economic news we have been seeing.


This month sell off in bonds is saying the bond market is a believer as well.


The yield curve is pricing in 250 bps of tightening in the next year. (similar to 94ish)


Enron stays with us as balance sheet fraud still has to play out (note qwest story about the swap it did with enron)


Telecom will continue to melt down


All thats left are profits to be realized.


With the S&P trading over 20 times earnings that is a tall order for companies.


I see stocks in a holding pattern for several months. If last Q4 rally really saw "6 months ahead" then we are getting really close to that and we have not seen the profits yet. SHOW ME THE MONEY


This month high yield indices are up 2.3%


I still like high yield for the next quarter.


Just my thoughts -