There doesn't seem to be any evidence that inflation is accelerating. In terms of when the bank can cut interest rates, we are still looking at sometime in the second half of the year.

It isn't a market that has matured, but there is more interest. Given where inflation has been - I've seen it up 10 to 12 percent - this is a market that should do much better.

The fundamentals are still there. We have low inflation, low interest rates and a worldwide demand for American products I don't think you have a problem as far as the market going up.

With higher gasoline prices putting a dent in consumer spending and underlying inflation looking to be contained, further interest rate hikes seem unnecessary.

The market is responding very directly to interest rates as kind of a one-dimensional thing -- fearful of inflation and I think that either higher rates may catch this market in 1997, or the flip side, lower earnings.

Long-bond buyers aren't afraid of inflation or increased interest rates, the way short-term bond buyers are. The Fed still seems to be in the game for the foreseeable future in driving rates up.