Although the S&P is down nearly 10% from it’s April highs, I’m more optimistic than I’ve been in some time. Low interest rates really appear to be a long term fixture and not a financially engineered aberration. The REAL risk free rate of return is really quite low and based on the DCF model, many, many stocks are undervalued even with diminished growth prospects. Insiders are beginning to acknowledge this with stepped-up buying. The lesson from last year and perhaps every year is that you have to buy when despair is high and prices are cheap. It’s important to do your homework and get comfortable with what you own as it’s impossible to pick the bottom. Everyone knows that yet few act that way.