
Takeaways From the Mega-Rally

By David Sterman
About this article:
Investors picked up some important clues in Monday's surge. Stocks that rose even higher than the broader averages are the ones that investors will flock to in any future rallies, especially if we get a bout of profit-taking as many expect.
If this rally holds, you can expect to see a surge of companies file for IPOs, many of which have been stalling for time with smaller, interim capital raises. But it remains unclear if the market will have an immediate appetite for these deals.
Traditional mutual funds already have plenty of bargains to select from among the tried-and-true lot of public companies, and hedge funds, which were recently the most active buyers of new issues, have a lot less cash to play with right now.
But any IPO activity would be great news for the investment banks, which are still employing lots of bankers with...

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