This was a big psychological negative and I think it was one of those things that triggered off the decline in tech stocks last summer. So the removal of the threat of breakup is a positive psychological thing.

We've now changed the valuation of the stock market quite a bit, ... If anything, the earnings estimates have been going up and stocks have been going down. The price-to-earnings ratio on forward earnings is now down to about 15 times, which is very low relative to interest rates and inflation at the present time.

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.

have been beating the drums about worrying about higher inflation, and so far, other than energy, we haven't had higher inflation. (But) I would say earnings are doing quite well, so I think that's helped to keep the market from having another bad week.

I'm afraid we're not out the woods yet with our friends at the Fed.

We have a lot of cross currents right now and so it's very difficult for investors to pick out the proper path. People like myself think that things are in fact slowing down some, that inflation is not a significant problem, and that while the Fed may tighten policy once in the next couple of months, they really probably don't need to.