We have reallocated out of bonds. We got a little bit nervous back in December. However, now that bond yields have gotten back to where they are and stock price are where they are, I think you're going to take a real look at bonds and maybe take some money off the table.

I think the Fed is hanging its hopes on a couple of things. The bond price has dropped and yields have gone up and it is doing the job for them. . . the economy as a whole is slightly slower in the second quarter than it was in the first. There's hope that it will tail off to a more sustainable rate.

There are not many times when I get nervous, but I do a little bit with penalties.

The first thing I'm going to try to do is bond with them a little bit and try to get them to see me as a friend and not as a clinical, cold physician,

We saw a lot of strength in the manufacturing sector in the NAPM report. That's why you saw bond yields rise today.

That would lead to a rise in bond yields and in turn start to make equities look unattractive. If that happens on Wall Street, it's going to happen here in the UK, it's going to happen in Europe, and everywhere else.