This market is not overly enthusiastic about the future, which gives me comfort that an optimistic approach to risk should be rewarded.

Things to watch for going forward; Real interest rates on TIPS are key barometers of the bond market's expectations for economic growth in the years ahead. If they rise this would be a good sign. Swap spreads are key indicators of the health of financial markets and leading indicators of economic health; right now they are very low and that is very good. Any rise above 30-35 bps on 2-yr swap spreads would be a flashing yellow light. Credit spreads on corporate debt are key indicators of the market's confidence in the outlook for corporate profits; currently they are relatively low and that is good. Commodity prices have been relatively low, but recently they show signs of perking up; if this continues that could be an indicator that the global economic outlook is improving. The residential construction has been in a period of consolidation in the past year or so, but recently appears to be picking up, and that is good. Any slowdown in the growth of bank savings deposits would be a good sign that risk aversion is declining and optimism is rising, and that would be very good. 

Looking ahead, I'm optimistic that the economy will continue to grow. I don't see a risk of recession nor do I see any significant acceleration. I'll be watching the aforementioned indicators to see if things improve enough to get really excited.