What happened this past week? The markets were extremely volatile as stocks had their worst showing for a new year in history, the December employment report was solid, bonds rebounded, and global uncertainties persisted. The DOW was off 6.2% for the week, the U.S. added an unexpected 292,000 jobs in December, and there were negative currency moves in China. A release of nonevent FOMC minutes and a quality flight to U.S.Treasury bonds left investors scratching their heads. It appears that corporate America’s bottom line might be getting smaller due to really cheap oil (crude fell to $33 per barrel) and a stronger dollar. That, coupled with new lay-offs, could be cause for additional global turmoil. However, our view is slanted towards a more optimistic outlook for the financial markets. Perhaps a little more selling for a few days but the worst of circumstances is in the past tense. UST notes still have good value as the Fed is likely to stay out of the way for the next 6 months. The 2-3 year range remains attractive at current levels as the spread versus cost of funds is worth any potential for market risk. There will continue to be a lot of volatility as geopolitical tensions persist. Stay Tuned!