NEW YORK (MONEY Magazine) - Pessimism is rampant. Despite a string of good statistics -- on growth, productivity, housing and unemployment -- an increasing number of investors think the economy is falling apart and the bull market is just about over.

In fact, there's no reason to believe either of those things. Barring catastrophic terrorism or some other severe shock, blue-chip share prices could advance for another couple of years.

Why then are investors so negative, when the economic bellwethers are pointing in the right direction?

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