Thresholds & Conundrums

(1) The smartest guys and gals in the room. (2) Fewer downside risks, unless you own bonds. (3) A promise is a promise with thresholds. (4) When unemployment rate falls to 6.5%, tightening talk will begin. (5) QE will be phased out by the time jobless rate falls to 7.0%. (6) Retail bond investors running for the exit doors. (7) Greenspan’s conundrum was falling bond yields. (8) Bernanke’s conundrum is rising bond yields. (9) Stocks on the sidelines while Fed and Bond Vigilantes duke it out. (10) A bad day for interest-rate sensitive stocks. (11) Oil demand growth shows slowing global economy. (12) Focus on underweight-rated S&P 500 Energy.