How sustainable is this bear market rally?

Every primary bear market is punctuated by periods of positive sentiment. But this current bear market rally looks vulnerable, and the credit crunch will continue to weigh on stocks.

If you have just read the news items, or if you haven't, do so now, you may well ask "Why has the stock market done so well since March when the news has been so bad?"

A possible answer to that testing question is to repeat JP Morgan's response. Whenever he was asked what the stock market was going to do, he usually answered "Vacillate old boy, vacillate!"

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