There are two kinds of investors.
There are people who buy when the market falls and sell when it rises-- and there are people who buy when the market rises and sell when it falls.
The stock market is going up because those of us in the former category; realizing that the DOW has fallen from 14,000 to 7,000, are buying. We also understand that the market generally overreacts to bad news, meaning buying after a precipitous drop is generally a good idea.
At some point the people in the second category will realize that the market has gone up a few thousand points and they will start buying. At this (I figure the market will be over 10,000) and I will be happy to sell.
If I knew the future, then my investments would be risk free and would be rich. But I don't know the future of the market (and in spite of your pessimism you don't either) so I figure the old "buy low/ sell high" strategy is the next best thing.
When you are over your pessimism and are ready to buy, let me know.