Before the market will rally, we will have to see
- Massive insider buying. I have written several times about the lack of it.
- Major corporate buybacks or dividends. For example, Apple could change the dynamics by splitting the stock 10 for 1 and pay a $25 billion dividend. It would have to be many more than Apple.
- Step up in takeover activity. We need to see the prices validated with takeovers.
- End of the gross excesses in the IPO market that values social media companies at absurd levels.
- Some good policy moves by the Obama administration. For example free domestic energy exploration with tax incentives instead of threatening the end of tax breaks for oil and gas companies.