The Stock & Bond Markets -
The market continues to show strength (shrugging off bad news and responding positively to good news) and so, if the "trend is your friend," then the outlook continues to be positive. There are some obvious issues of concern to the markets (Iraq, Iran, oil, interest rates) and these are to be respected by maintaining a diversified portfolio rather than letting greed dictate your investment strategy. Keep a good allocation of stocks (domestic and international), bonds (various maturities) and cash (money market funds) or let us do it for you.

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Real Estate Bubble? -
UCLA economist Ed Leamer says the trajectory for real estate prices is clear. "The housing market was like a rocket that has gone up and now it's lost its fuel," Leamer said. "Some people think it will stay suspended up there magically. We think it's going to come back to Earth -- sales will drop even more, and then next comes weakness in pricing." Leamer predicts that prices will stagnate for several years as incomes catch up, but if the job market deteriorates, prices could drop. It's not just the "little guy" at risk - Oracle Chairman Larry Ellison just dropped the offering price on his home from $25 to $16 million - hmmm.