If you are a competitive investor, you've got to assume the Fed will succeed in re-igniting the economy.

More and more strategists are of the opinion that the Fed may be completely through.

If the Fed is on the warpath with an eye to slowing the economy and trying to blunt inflation before it becomes a problem, by slowing the economy the Fed is hoping to address any imbalances between supply and demand, specifically for labor. It feels to me like the market is starting to look beyond the impact of the Fed and setting ourselves up for a second half where the wrestling match will not be between interest rates and valuations but rather between earnings and valuations.

With scandal-ridden capital markets, a mediocre recovery and still high valuations, a lengthy bottoming and healing period is needed before we get a substantial upturn in equities.

We are finally starting to come to those stocks that haven't given up ground yet. This is the first time that these stocks that are priced for perfection have shown some imperfections.

We are in a healing process which will take a couple of months.