That puts too much faith in Fed policy and tax cuts. That won't be sufficient to provide a second-half upturn. On the monetary-policy side, we will have further rate cuts. I'd refer you to the zero interest rates in Japan as an example of interest rates not being stimulative. Not necessarily as a complete alternative to stocks, though there are some that we really like, but bonds are a very important portfolio allocation, and at this point should be greater than usual.
Municipal bonds are particularly attractive for individuals.
Our asset allocation is usually driven by income needs of individuals and their need for an alternative income stream so that they can create a disability insurance fund of their own. You mentioned that you recommend munis for many of your clients. We also recommend California issues, despite the electrical issues. We like Texas and Florida issues. There are many good muni issues.