If you’ve read our two most recent Monday Morning Outlooks, you know we raised our forecast for the S&P 500, but lowered our forecast for real GDP growth. How can that be?

The first thing to recognize is that when we say we’re bullish on stocks that doesn’t mean we think the stock market is going to go up every day, every week, or even every month. It won’t. Nor does it exclude the possibility of a correction in equities, which based on historical frequency is past due.