Aggressive investors may want to add more risk to their portfolios. The 3-mo./10-yr. spread is normal as are the Treasury bill and AA-rated commercial paper yield curves. More importantly, bond quality spreads have been narrowing for a week. Finally, all 30 of the DOW dropped today.

Fear indicators, of course, increased today with the VIX reaching 26 and the Put/Call near 1.30. The market is looking backward at the Fed's old preoccupation with inflation rather than forward to its continued support of credit-worthy mortgages.

There may be some bargains now for those willing to face slower consumer spending in a sluggish economy.