However, the evidence of the last two years might lead one to wonder about that. While lower rates mean cheaper and looser money, they also reflect potential weakness in the economy. The bond market's best friends are slow growth and deflation. Slow growth implies more downward pressure on interest rates and less upward pressure on prices. Conversely, the bond market's worst enemies are high growth and inflation.
High growth implies more upward pressure on interest rates and inflation.
For clues to a turn in the stock market, it might be prudent to wait for a bottom or bullish reversal in the bond market. Bonds and rates have an inverse relationship. Bonds fall when rates rise and bonds rise when rates decline. The long-term trend for rates is down. The Sep-98 decline in rates was also quite sharp.