There is this simplistic notion around that because the yield curve is inverted, therefore, economic growth is going to slow down, but ... no consideration is given as to why the economy would slow down.

I think the message in this inverted yield curve is muddled. I think it is something to watch and to understand better. But I am not overly concerned.

We continue to see very rapid economic growth which has been a problem for the Fed all along. We have not seen a material increase in labor costs and that's what I think is going to be the ultimate problem in the economy somewhere down the road, though clearly it's not imminent.

It is a year for modest economic growth and therefore modest earnings growth.

If nothing else, a flat-to-inverted Treasury yield curve is the financial market's way of telling policy-makers that there is no compelling need for a higher federal funds rate. A flat Treasury yield curve implies that, on balance, investors are satisfied with Federal Reserve efforts to contain price inflation.

The curve inverted modestly yesterday, and people are piling on.