Profiting in Market's Stormy Weather

2001 was a wildly frustrating year for stock market investors.

A second-consecutive year of negative returns aggravated market bulls. The losses were not significant enough to educate and reform the perma-bulls, but listening to their relentlessly optimistic drone has irritated even the most faithful. The significant rally in the fourth quarter raised hopes yet again that happy days are here again.

On the other hand, the lack of a complete stock market collapse (especially after Sept. 11 and the implosion of corporate profits) continues to frustrate the bears. Still-lofty stock valuations and the incessant hype spewed by reporters, analysts and portfolio managers on CNBC tainted the bears' "victory" earlier in the year. Both bears and bulls remain frustrated with Alan Greenspan, the former for his New Economy boot-licking, and the latter for his stock market bubble-pricking.

Familiar-Sounding Forecast

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