The fear that the Fed will continue well into 2006 has been dramatically reduced, and that's why equities look so good.

It will be all the disappointments that attract everyone's attention. They will get the headlines, but the underlying strength of the market will continue through this quarter easily.

There have not been any big blips in inflation (so far this year).

There have not been any big blips in inflation (so far this year),

What the Fed is telling us here is that they are not of the mind to put so much tightness on the economy as to jeopardize modest growth in the year ahead, and the market is taking great delight in that.

The housing report today and other numbers from last week indicate more strength in this economy than had previously been thought.