June 14, 2011 Topics: On lessons learned running the Stratford Inn Market update: for better or worse, this is the kind of year we were expecting. We were surprised at the market’s unbridled optimism in April 1 , since the tug-of-war between private sector profits and public sector problems has a long way to go. We chose the charts on the front page of our 2011 Outlook carefully; they were designed to show that equity markets were priced inexpensively, but were likely to stay that way, given too much stimulus in the East, and ineffective stimulus in the West 2 . We expect a modest second half recovery, based primarily on US capital spending increases, easy credit conditions everywhere, and a pick-up in industrial production in Japan. But the world’s structural problems are weighing on the private sector, and our