Here are a number of incontrovertible facts:
1. A bull market in stocks ends every bear market
2. A bear market in stocks ends every bull market
3. The Federal Reserve cannot prevent a bear market in stocks from eventually occurring
A new stock market bull in October of 2002 terminated the tech wreck (3/10/00-10/09/02) that had terrorized investors for two-and-a-half years. The new upswing (10/02-10/07) happened in spite of a recent recession - it occurred even as the nation's leaders debated going to war in the Middle East. Yet few demonstrated the confidence to buy stocks at significant price discounts in late 2002. On the contrary, a great many individuals let their fears overwhelm them.
Trepidation makes people forget that good times for stocks will return. It makes them doubt that a new bull market will eventually stop a bear mauling. Perhaps ironically, the financial media lead people further…