View from the Observation Deck

1. We have done a number of blog posts in recent weeks explaining the potential risks associated with owning Treasury securities at or near historically low interest rate levels.
2. Historical data shows that interest rates do fluctuate with changing economic cycles. Periods where interest rates rise tend to be associated with growth cycles, and vice versa.
3. The Blue Chip Economic Indicators survey in June revealed a 2012 U.S. Gross Domestic Product (GDP) forecast of 2.1%. Economists see GDP growth accelerating to 2.6% in 2013.
4. Standard & Poor's estimates (as of 6/29) that the 2012 earnings growth rate for the S&P 500 Index will be 7.7%. It's 2013 estimated earnings growth rate is 13.9%.
5. So the outlook for the economy and corporate earnings is rather encouraging looking ahead to 2013.
6. Now could be an opportune time for those investors steering clear of stocks to this point to take another look.