I'm betting that there are some great trades out there. If the world suddenly gets sick of sending us products for little slips of paper, we could see a rapid decline in the dollar and no demand for the considerable liquidity the Fed has been producing. This, in turn, could lead to real inflation until the adjustments to the money supply can be made. An alternate scenario has the Fed slowly pulling in the money supply reins and an expanding world economy continuing to demand greenbacks. There is no significant surplus of liquidity, and hence, inflation.
Consumer confidence remains high, and corporate profits grow modestly.
Lacking a better outlet for investments, people continue to invest in stocks, but with thoughtful investors looking for value, ensuring broad participation in the market. Multiples stay high. This second alternative pretty much describes the second quarter of 1999. The balance of the chances are in outcomes where the market is flat to slightly down. All in all, it could be a rosy picture or a train wreck.