I don't think it's particularly rosy for the next few months. Inflation is back on the agenda in the US, with higher than expected CPI numbers. This has to be a concern in an environment where Bernanke is dropping interest rates at the first sign of trouble. I'll be buying a few out of the money index puts as a little protection over the next few months. The Fed is in a difficult place because at every sign of trouble in the US economy, people are expecting them to drop rates, which is counter productive when you're trying to fight inflation. This seems to all be part of modern man's inability to be accountable for their actions. 'I'll borrow a stack of money and if I can't pay it back, then the government will freeze my interest rates at artificially low levels or drop interest rates to help me out'. All seems a little quick fix, a little phoney and bound to fail.
A lot of people think the world is going to end on their shift, it's not, but the US economy might head into recession.