We have this backdrop of the Fed raising rates and a growing fear that there's more to come based on economic statistics. What will determine how we do is what those statistics look like over the next few months.

I think divergence is the name of the game for the first half of the year.

There is substantial further advance looming now on the heels of this move. There are a couple of things that could show up down the road that we should keep our eye on.

People are questioning the underlying fundamentals of (technology stocks).

The question is what catalyst will get it going. My guess is more signs of a stronger economy. That might be higher interest rates, but you may need that to get small caps going. They may improve as the bond (goes down).

Investors tend not to have a big problem with split government because for many investors, the government that governs the least is the government that governs the best.