California's history is filled with boom to bust to boom, rinse and repeat ad infinitum. So, of course, things will get better. The money question, however, is when. Compare the Yahoo! piece with <a href="http://calculatedrisk.blogspot.com/2008/07/feds-yellen-risks-and-prospects-for-us.html">the opinion </a>of SF Fed President Janet Yellin.
While it's nice to read other people's opinions, to decide what's best for you, I would suggest (1) defining your target market, (2) get as much information as possible about the trends for the last five years and the reasons for those trends, (3) see if the reasons for those trends have changed or no longer exist, and (4) draw your own conclusions from that. While some data points and conclusions regarding the national market might apply to what I think your target market is, most of them won't.