Friday saw another 200 point downturn, but I think we’ll see 14,500 by the end of 2007 or Q1 08 . Earnings have been good in general and even the CAT disappointment was not due to revenue slippage but instead to one time capital expenditures that promise to increase earnings in the future. Tech seems strong. GDP was an uspide surprise and even consumer confidence was up. Just saw a report that the inflows into hedge funds in Q2 2007 set a record. How is that money going to be deployed? Surely not into risky bonds. Also saw an article in Barron’s last week that confirmed the “little guy” (the retail investor) has by and large sat out this Bull market run so there is not anywhere near the speculation of the late 90’s.

I try to buy USDA Prime steak when it’s on sale and the same goes for great stocks. I’ll spend a few hours this weekend hopefully finding some nice cuts to choose from.