What a Week: Bets Are Unraveling

"Investors have been left to wonder why it is that stocks are no longer advancing in the face of all this good news" on the economic and earnings front, Bear Stearns strategist Francois Trahan wrote this week. "The message from these indicators is clear: The best of times are behind us for stock prices, and more measured returns should be expected going forward."

That may be the outlook for the intermediate term, but it's certainly possible riskier bets could soon rebound after this week's washout, perhaps in concert with Tuesday's FOMC meeting.

"Maybe short term we're done unwinding," Dow said. "But until high-yield [debt] converges down with emerging markets, it's hard to imagine we're done flushing the risk out of the system."

Again, I believe, what's applicable for high-yield debt is germane to equities -- very germane.

Finally, I'll be back on John Batchelor's ABC Radio Network show to discuss these and related issues Friday night/Saturday morning, around 9:30 p.m. PST/12:30 a.m. EST. Check the ABC Radio Web site for local listings or Webcast options.

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