Economic Preview: Slower economy boosts stocks, odds of Fed rate cut, sends bad news bears running

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A scene from the hit 1976 film ‘Bad News Bears.” Investors have been flooded with a series of reports showing a softer economy, but not bad enough to turn Wall Street bearish.

A stream of negative news pointing to a slower economy has not only failed to halt the latest bull run on Wall Street, it’s actually encouraged investors to snap up more stocks.

In the sometimes wacky world of Wall Street, the reason is understandable enough. Investors expect weaker U.S. growth to force the Federal Reserve to cut interest rates and supply more stimulus to the economy. Lower rates also make stocks DJIA, +0.08%SPX, -0.14% more attractive investments.

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