Here Come The Bulls

Rising interest rates usually bring gloom to the stock market, since they can presage a slowing economy. But stocks are doing the unexpected. Last Friday the Dow Jones industrial average closed at 2226.07, its highest level since Oct. 16, 1987, the Friday before Black Monday. It was up 32 points for the week and 57 points since Jan. 1.

Why the bullishness? The economy's proven resilience is one reason, but many investors simply cite the bandwagon effect: no one wants to miss out on a good rally. Even some small investors, who have generally avoided the market since the crash, have...

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