Ignore Statistics, Market Pessimists Will Be Rejected

As interest rates continue to decline, stock prices have been moving in tandem since last summer, Ryoji Musha, president of Musha Research observes. This correlation gives pessimists “a reason to expect another crisis on the same magnitude as the global financial crisis,” he observed. The logic is that once the interest rate market is normalized, the correlation between bond and stock market returns will work in the reverse. Musha says this logic is entirely false and “pessimists will be completely rejected.” But don't look at economic statistics, particularly regarding productivity growth. Musha says they "cannot be trusted" as he makes the argument market pessimists have no proper arguments for concern.