And I thought lower rates meant a higher stock market!



Every day the market has been down the past 2 weeks, we were told it was because rates were going up. There goes that theory. Today, 10 year rates went down 25 basis points while the Dow went down 185 points. As most so-called expert explanations in the media, this one is not worth much. Same with the dubious relationship between oil price and stocks or dollar and stocks. You can make the case (as I do sometimes) that, over the long term, such relationships/correlations do exist but not day to day.
On the other hand, one very significant relationship today was the fact that Google went up 2% with a market down 1.3%. Google closed at a new all-time high and I would expect it, after this mighty show of force, to keep going up. I will be posting an update on GOOG in absolute as well as relative terms shortly.