The equity bull market hasn't begun.
From the NYTimes - here are the domestic flows of cash into and out of equities and bonds over the last twenty-five years for small investors. In 2008 was the peak of money flows out of equities, and in 2009 was the peak year for money flowing into bonds. When you look at the current year of 2010, we small investors are still net pulling money out of equities. And our bond purchasing is still really darn high (about half of 2009).
What does this mean? It means among small investors, the attitude is predominantly still quite bearish. It makes sense to me - the media is highly bearish and has been skeptical about the rally since march 2009. The poor employment picture has made plenty of bad news for small investors.
On the large scale though - what we've been seeing is continued growth in China, a resurgence of the manufacturing and exports industry over the last year, a stabilized banking system - with quite large profits from the low interest rates, low inflation, and a buildup of corporate cash (now leading to mergers and aquisitions). We've got an IPO of GM coming up, and probably many more.
The crowd is still scared - therefore I think equities are still running at sale prices right now.
What is fair price? I think it happens for many stocks above S&P 1200 levels.