The markets had a very strong week, with the Dow ending up 2.37%, the S&P up 2.04%, and the Nasdaq 2.83%. Investors were able to look past weaker-than-expected numbers in new homes sales and durable goods orders.

Bond prices continue to rise while yields (necessarily) fall. Our investment meeting today again underlined our conviction: bonds are in a bubble. We stress that investors should be exceedingly cautious in the bond market— and may want to avoid it altogether.

This week’s factoid: The mortgage crises have gone so far that Bank of America evidently has decided it can foreclose on any home, even those that do not have mortgages. BofA has foreclosed on and remanded the title of a house for which the owners paid cash seven months ago. Thankfully, BofA recognized the error and is correcting it “at [its] own expense.”