Never underestimate the stock market’s ability to prioritize hope over experience.

Hope would suggest that everything will work out fine: The banking panic that began with Silicon Valley Bank’s collapse is just a blip; the Federal Reserve’s quarter-point interest-rate hike, despite the turmoil in the financial system, is sound monetary policy; and the

S&P 500 index

bounce that began in October really was the start of a new bull market. That the index rose 1.4% this past week, while the

Cboe Volatility Index

better known as the VIX, fell 15%, would suggest the problems are manageable.