Weekend Reading: Smooth Sailing

Good Sunday. Here are some articles and papers worth reading. First, however, a look back at the week that just finished, and a look forward at the week ahead.

The major markets all advanced again last week. We are near four-year highs on the Dow, and the S&P 500 is in a similarly advanced state of glee. While the Nasdaq Composite is doing nowhere near as well, it too had solid week.

Why do investors remain so cheery? Lower energy prices and relatively stable inflation have helped, as has the absence of hurricanes, floods, and other acts of misbehaving nature. But it also feels like one of those year-end things, a situation where investors are determinedly optimistic about putting a good-sized slug of money to work, and they will continue doing so until there is a good reason not to. ...