I find it curious that every time new stats come out on job losses that the stock market begins to sell-off. Indeed, is it a surprise that in a recession people lose their jobs? Why should it surprise stock investors that economic conditions are really terrible and will likely get worse in the months immediately ahead? In spite of this reality the market hasadvanced nearly 20% from the November 20th low. Why? Well, the market supposedly is discounting all this bad news and looking for an economic recovery in 2009. The only difficulty this time around is that conditions may turn so ugly that there will be no meaningful recovery next year no matter what stimulus the government enacts.