I've suggested recently that alarm over the "fiscal cliff" has driven stock prices lower and investor pessimism higher to an excessive degree.
Today's stock market gains have been attributed to encouraging comments from political leaders about overcoming the fiscal gridlock. I've thought that if there is substantive action by the two political parties on that issue, stock prices could explode higher.
Given that potential, I have urged reducing substantial cash reserves and increasing equity allocations. I stand by that.
S & P 500: 1380