just plain old tuesday, page-79

I should qualify that.

Rate rises can eventually kill a market and markets will turn down before rates fall.

Sometimes a rate cut or two will turn the market back up, but in large bears rates will need to be cut many times before the turn comes.

So any one rate rise suggests the economy is strong and is not negative until the burden becomes onerous and no one knows when that point has been reached.

Similarly, a rate cut suggests the economy is weak and no one knows how many cuts are needed.

So equity markets tend to lead and rates follow.