Is the Market’s Optimism Premature?

After dropping by more than 10% in three weeks, the US stock market has finally bounced.  Stocks staged a nice rally this past week of nearly 5%, but I seriously doubt that this recovery is the start of a much larger move to new all-time highs rather than just a bounce before a further sell-off.  Of course, many stock analysts are already declaring that the bottom is in and that the correction in the bull market is over, but they have consistently gotten things wrong for years.  Many of them are perma-bulls, and there is almost no market environment in which they don’t see further upside for stocks.