It seems like this should be a given because of the horrific performance of the stock market indices over the past year and a half, but some still continue to let the last few weeks of gains cloud their view of the stock market. I strongly believe that the single biggest cause of the excessive optimism regarding the stock market’s performance is the financial news networks. Each of the last few days I have watched and heard them speak of how stock XYZ is up a “stunning 100%” in the past 3 weeks, only to fail to point out that despite that gain the stock is still down over 80% in the past year or two. Quite honestly, the major of investors who have held that stock during its tremendous fall probably aren’t horribly excited about the 100% gain in the last three weeks.

This isn’t to say that the recent gains aren’t a good sign overall, they may well be. I know I am certainly glad to see the 20% gain in most major indices. It is important to keep things in perspective and realize that while a little progress may have been made, the market and the economy have a long ways to go and the future is still very unclear.

The next time you turn on the television to listen to your favorite business news network remember to temper your optimism and hope for a long-term improvement in the economic picture. Don’t allow yourself to feel like you may have missed the train that is the stock market shooting straight up. The volatility will most certainly continue and the recent gains have not changed the fundamentals of the market as a whole. It’s fine to appreciate the stock market gains that occur, but don’t let them skew your overall investment plans or make you feel as if you are missing out on the rally of a lifetime.