Salient to Investors:

Art Cashin at UBS said if investors don’t jump in based on the bullish market move, then traders will be looking for any trigger and start to worry about the sequester. Hogan said everybody’s looking for something to cause a pull back.

Tom Lee at JP Morgan says to be long with quality stocks as the rally is maturing and stocks will drop soon, though many investors are too underweight stocks. Lee said equity inflows is a sea change and important for active managers who are seeing the first inflows in a long time – if it continues there’ll be more dip buying and limited downsides.

Scott Wren at Wells Fargo Advisors said many investors are risk-averse and underinvested stocks and overweight bonds and cash – baby boomers have been hit hard twice in the last dozen years. Wren sees no acceleration in the economy or inflation so stocks can rise as valuations have been low.

Lipper said equity mutual funds have just taken in their largest four-week total since April, 2000.

The consensus view is that stocks will stumble when Washington addresses fiscal issues, but pick up again as the economy improves in half2. Analysts expect risk assets to continue to benefit from the Fed’s easy policies.

David Ader at CRT Capital said the rationality for a strong stock market implies a weak bond market, but sees a big sideways bond market.

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