Summary of This Week's Reading Material

• The bull market looks vulnerable to a fairly mean selloff  once the end-of-the year rally runs its course and the expected reinvestment surge early in 2011 exhausts itself.

• Margin Debt on the Big Board in October swelled to the highest level since Sept 2008, just before Lehman collapsed.  A forced unwinding in the market could be very ugly.

• Overpriced Stocks:  Restaurant stocks look expensive with High EV/EBITDA
• Chipotle (CMG), Panera Bread (PNRA), Red Robin Burgers (RRBG) 

• Overpriced Stock:  Netflix (NFLX):  Cost of acquiring content could increase in future due to Studios looking to prevent NFLX from reducing industry profits; Penetrating the subscriber market will be more difficult than in the past.

• High-Beta strategies may do well this year should you be projecting a strong 2011, as many economists have.

• Corporate earnings growth in 2011 will be much more difficult than in 2010. In 2010, companies were gauged against weak 2009 comparables.  Going forward, companies will be compared to the healthier 2010 earnings.  The Materials, Energy, Consumer Discretionary and Technology sectors are expected to have the strongest sector earnings growth.