This is very different, because the equity market is actually about 28 percent overvalued compared to our models right now.

We have fear of higher oil prices and the lower dollar against the yen.

The two-year auction didn't go well. People are using that as a reason to sell. ... We're in a bear market.

We saw a lot of strength in the manufacturing sector in the NAPM report. That's why you saw bond yields rise today.

Back in December of 1996 when he gave his very famed 'irrational exuberance' speech, the stock market was actually fairly valued according to or models. This is very different, because the equity market is actually about 28 percent overvalued compared to our models right now.

Although the economy grew briskly, it is not leading to inflation pressure one has to worry about.