Lower rates make it cheaper for companies to borrow and invest in new plants and equipment. But that's not the only reason. Lower rates on money funds and bank CDs push money into the stock market. CD rates should fall, too. Today's lower stock prices look attractive.
Low prices are no guarantee of a rally, but it's better to buy low than high.
And investors barely bashed telecom giant Cisco on Tuesday after it announced poor earnings. If true, the worst selling could be over. Most agree that trying to pinpoint the bottom of a bear market is as futile as trying to call the top of a bull market. And there's still plenty to worry about. It could take some time for the profit slowdown to take its course.