The question is what catalyst will get it going. My guess is more signs of a stronger economy. That might be higher interest rates, but you may need that to get small caps going. They may improve as the bond (goes down).

At the moment there is not a broad-based systemic inflation problem bubbling up in the economy. The Fed as a precaution has raised rates a little bit, will raise rates a little bit more but I don't think they are going to do a whole lot more after that.

I think the Dow will hold up fairly well. The stocks are much cheaper (than Nasdaq issues), and the supply-demand conditions in the businesses are much more positive.

It should not be introduced at high levels, where it will shock the economy. Instead, the GST should be gradually eased in and the list of taxable goods expanded over time.

If China's economy does simmer down, it will have an adverse impact on the materials sector, and on commodities, including oil,

The economy could get back to an above trend rate this quarter, and that is what will matter to monetary policy makers.