It's largely because the market is now reassessing the Japanese economy, and following seven years of stagnant, if not recessionary growth, you're now actually starting to see some positive numbers.

The key for Asia is going to be the yen. As long as the yen stays about where it is or weakens a little bit, the rest of Asia should be fine. I think the market got ahead of itself over the past six weeks, driving the yen stronger against every major currency, and I think that we will probably start to see a little bit of unwind from that.

We continue to see signs of economic growth coming out of Europe. If we see some signs of weakness (in U.S. stock markets) or even that European equities outperform U.S. equities, you'll start to see money go out of the U.S. and go into Europe.

You really don't want to do any sudden moves. The economy is doing really well. Why fix it? It doesn't need fixing.

Foreign policy is something Americans care about when the economy is good, and when it isn't, they hardly notice it. It's hard to worry about what happens in the Mideast when you don't have a job in the Midwest.

Reagan won the Cold War by first restoring America's economy and military and then staring down an economically weakened Soviet Union. He knew defeating Russia couldn't be accomplished without laying the groundwork.