Michael K. Farr April 18, 2008 0 5) Earnings growth resulting from margin expansion 1) Oversold from the 2000-2002 market correction 2) Strong rally in commodity-related stocks due to 5%+ global economic growth 3) Lower risk premiums on all investment classes, which was a function of global liquidity 4) Huge increase in private equity activity, which is a function oflow interest rates 1
