The bond market is still behind the inflation curve. The inflation story continues to chip away at our economy and it doesn't seem to be getting any weaker.

Inflation is still moderate but this is about the outlook, and an economy that's doing well bears always risks.

Investors are recognizing the fundamentals are still terrific, ... Profits are sound, the economy is growing. Inflation is not yet rearing its ugly head.

At the moment there is not a broad-based systemic inflation problem bubbling up in the economy. The Fed as a precaution has raised rates a little bit, will raise rates a little bit more but I don't think they are going to do a whole lot more after that.

Not only is the economy slowing but it is a reminder that inflation risks diminish as the economy slows. It emphasizes that the Fed would be quite well justified for easing policy as early as next week, a move to a neutral bias with a rate cut being the next logical step in January.

The economy is growing at a reduced but healthier pace. We don't anticipate any inflation problems, and corporate earnings are going up, up and away. So, yes, we're still bullish.