The potential for additional gains for stocks is limited given that we've had such a good run-up. We've been telling people to pare back a bit and reduce equity holdings.

A single-digit percentage gain looks more likely this year. We had a great '03, a great '04 and a great '05. I think we're due for a pause at some point.

This market needs a dose of good earnings expectations. It wants to hear, from companies, that prospects are improving because the fourth quarter is water under the bridge.

Technology is now out of favor. People are rapidly concluding there is not a quick fix in store.

We're doing a little better then the U.S. indices, which is nice to see. I wouldn't view this market as highly directional today, though.

You have the potential of a breakdown of the entire system if you have a slowdown of economic activity in the center even as inflationary pressures mount, ... We're on the edge of it, yes.