Where Will the Stock Market Go From Here? Ask Bonds – Bloomberg

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Equities have adjusted to higher interest rates. Will they have to adjust to lower earnings? 
Mixed signals about the economy could make for some compelling short-term rallies in equities.
Photographer: Michael M. Santiago/Getty Images

The bear market in US stocks may be nearing the end of Act I (adjusting to higher interest rates), and many investors are looking ahead to Act II (adjusting to lower earnings.) But the transition is taking longer than anticipated, and some are questioning whether Act II is truly coming at all.
That’s reasonable, and that uncertainty could make for some compelling short-term rallies in a stock market that’s been beaten up.

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