Falling Interest Rates and Rising Stock Prices Can be Related

Neil Irwin has an interesting piece noting the worldwide fall in commodity prices and interest rates has been accompanied by a rising stock market in the United States. While the piece approaches the issue from the standpoint that these movements present a seeming contradiction, that is not necessarily the case.

Falling commodity prices and interest rates can be the result of economic weakness, which is undoubtedly in part the case now. Other things equal, a weaker economy will mean lower fut...