The positives and negastives of the market

The prevail sentiment currently is that the market is undervalued but there is enough uncertainty in economy to prevent money shifting to stock. My view is the market probably is fair valued because the earnings may come down next year and there are many companies' pension obligations in deep holes.

However, there are some positives as well:
1. Overall, competitions have decreased over last two years. Lots of supplies have be taken out.
2. The barriers are high for new companies to come into market because of tight credit situation for small and new companies.
3. The credits are cheap and available, on the other hand, for large and mature companies.
4. M&A activities are increasing.