Stocks rallied for the second consecutive week as investors turned their attention away from the struggling global economy and toward the moderately growing U.S. economy. Furthermore, investors also find equity valuations appealing especially as compared to fixed income. Despite the rally, at the current time, both the equity as well as fixed income markets are dealing with an enormous degree of economic uncertainty (negative interest rates, China, falling oil prices, President Obama’s proposed oil tax, a weak Europe, the rising dollar, declining high-yield bond prices) which will likely remain into the foreseeable future. We have always said that investors should pay attention to the downside and the upside will take care of itself. This time is no different. After the historical run-up off the March ’09 lows, we think it prudent to pick your spots when investing, specifically as it pertains to the price of the security as well as the value of the broader market. Keep in mind that we believe that monetary policy accommodation will remain easy longer than Wall Street is currently expecting. We have often stated that the level at which corrections begin as well as the severity of such a pullback are impossible to predict. Let us also add to that “the catalyst….” Don’t buy long bonds. Stay with intermediate as when rates do rise, the yield curve will most likely flatten a bit. Finally, keep in mind that your portfolio must be measured against your long-term objectives. Do not be caught up in the day-to-day noise of the markets.