It's hard to buy equities at the bottom, but we will probably bounce around one this summer.

Interest rates are at an historic low. Private investors and institutions may need to buy dividend-paying stocks to augment their fixed income portfolios and meed their cash requirements.

The three-month bill was 0.15% in January and is now at a rock-bottom 0.01%! This is clearly a sign that the short-term fixed-income market is rich relative to other assets. Long rates may rise when the Fed stops propping up the bond market with its QE2 purchases. Cash may be dragged into higher-yielding assets...including equities.