While the World digests the events that played out last week in Egypt, we look to see how this will affect us. We are far removed from such things and the residual effects can be seen mainly in the oil markets. We don’t think that the quick spike in oil prices will stand. While 5% of the World’s oil moves through the Suez Canal, events such as this seem to have a short cycle and we fully expect the price of oil will drop back to the 90-95 dollar range.

The positive jobs report on Friday was closely watched by the Fed, we are sure. With that being the third consecutive rise in employment, the Fed will probably feel compelled to start tapering as soon as September and let the economy go where it is going to go.

We think that with all the money that has flooded the economy and the loosening of credit across the board, the economy can sustain momentum and expand. We are not so naive’ as to believe that all is well, but we do believe that things are decidedly better than they have been and will continue to get better.

Some interesting data points this week will be: Consumer Credit, Consumer Credit, and PPI, which come out on Friday. There won’t be any surprises and we stay firm in our belief that inflation will not it’s ugly head anytime soon.

There are two separate events that may be interesting coming up this week. The Fed minutes on Wednesday and Allen and Company’s gathering of media moguls in Sun Valley Idaho. This conference could get interesting for several reasons. There is a coming wave of consolidation and deals get made in the mountains.