Interest rates are now hitting record-lows while stocks hit record-highs; this has never happened before. Nor should it ever happen.
You see, changes in interest rates are typically a very good economic indicator, forecasting future growth and inflation. In recently plunging to new, all-time lows, they have taken out the lows set during the Great Depression. In other words, the bond market is saying the prospects for the economy are not very good and possibly very dire.
Michael Campbell’s commentary on The Dominant Driver of Capital World Wide