Oh, and one other thing.
I believe the market is fully priced and that returns going forward will be dull, with low volatility, in the 5% to 8% range. Current low volatility implies unrealistic expectation of a low-risk geopolitical environment. Returns for investors will come from buying selloffs during periodic high-volatility events associated with terrorism risk, large European bankruptcies and big moves in currencies and commodities. The trend will be flat to up, however, as the Fed will continue to provide liquidity through low interest rates. In the fall, if it appears that Bush will achieve a supermajority in Congress to pass his political, financial and social agenda, then the market will be primed to soar in the fourth quarter and in 2005.