Both Bears and Bulls Are Wrong

I come back from a month out of the country and what do I find? A market that looks shockingly similar to the one I left behind -- and to the one investors have been struggling with for the past 18 months.

Once again, as they did in April 2001 and August 2000, the indices have staged an impressive rally off a bottom in anticipation of a recovery.

For instance, the Nasdaq climbed from 1639 last April to 2314 on May 22 -- a 41% jump -- as investors bid up stocks in anticipation of a 2001 recovery. The Dow Jones Industrial Average rose 21% from March 22 through May 21. ...