3. The yield curve will steepen but the degree may be less than initially thought due to the sharp drop in commodities, weakness overseas and strength in the dollar reducing inflationary expectations further.

4. A new conservatism permeates governments, corporations and individuals is clearly true. Just look at new Fed rules for the banks and at corporate cash flow reported for the second quarter so far. Hillary Clinton's tax proposals are not good for the economy, capital formation and investment but may improve the Republican's chances in the next Presidential election.

5. Profits will surprise on the upside clearly occurred with second quarter results reported so far.

6. Financial leverage and capital ratios will continue to improve. Clearly this is the case as most corporations are capping capital spending at depreciation therefore generating a lot of free cash. Banks continue to raise capital ratios and reduce leverage and risk.

7. M & A activity will remain strong. Just look in the newspapers every day to see deals of all sizes. Both the acquirer and the acquired company's stocks rise, as most deals are anti-dilutive day one.

8. Commodity prices continued to decline as producers remained slow to cut back production at levels to or beneath demand growth so inventories continued to rise and prices fell. But lower commodity prices are good for inflation, interest rates and profit margins. Not for commodity companies though.

9. Corporate managements are acting as their own activists recognizing that change is a necessity to survive and thrive in a globally competitive landscape.

10. A Greek default was contained although I doubt that Greece can live up to the terms of its new deal with the ECB. The can was kicked down the road.

11. I  still doubt that the Fed can begin raising rates until 2016 and overall policy will remain easy. Future rate hikes will be small and spread out unless there are major changes in the outlook for the U.S and global economies.

12. he economic cycle will be extended with lower highs and higher lows. Still valid. There are few, if any, excesses.