Everybody is in a pretty reasonable state of confusion.

I don't think, even with the economy a bit better, that we've crossed the inflation threshold. But we're operating pretty near full potential and that is why the markets are so sensitive to these economic news events.

It seems the stock market is more tuned to the bond market now than it has been in the past several months. As soon as we got oriented towards the bond market, all this economic data increased in significance.

Cheap is a relative term. In terms of price-to-earnings ratios, some of these stocks are still high.

Analysts are not way off the mark anymore, so companies don't have to talk them down,

In fact, if you wanted to be sort of perverse about it, the last thing I'd want to see would be fantastic earnings.