The economy has remained remarkably robust as energy costs have soared since early 2004. Gasoline now accounts for only 3 percent of total personal consumption spending, down from 5 percent in 1981.

In the last year, I thought we'd get to 7,600, which looked like a pretty far-fetched forecast back then. Now I think we can get to 8,500 by year end. I think there is still potential for the market to move a lot.

I'm actually very pleased to see they decided not to raise rates because it's really not justified by the performance of this economy,

Their systems could be so disrupted that they can't go on with business. They can't export, they can't import. It's hard to place a phone call into Brazil. It's hard to get the parts from Taiwan. All that could add up to a global recession that could still impact our economy.

The average American's real income and consumption is the highest it's ever been.

It's going to be very hard to find anybody on Wall Street who can complain about Bill Clinton with the kind of performance we've had in the stock market.

Now, I think you have to add an entire percentage point

Bond yields could jump and then stock markets open down around the world. But, then people would say, 'I'd better be in bonds,'

The question is how much does Yamaichi own?

We believe the equilibrium price of crude oil has risen from about $20 per barrel during the 1990s to at least $30 during the current decade. The fundamentals are solid for the energy sector. Energy represents 6 percent of the S&P 500 market cap -- in our opinion it should be double-weighted.