Yet Another Reseach Study

The research study example comes from a WSJ article by Justin Lahart titled "Rate Cuts: Cheer or Jeer." The example is as follows:

RATE REALITY

• The Hypothesis: Investors tend to take it as a given that interest-rate cuts are beneficial for stocks.
• The Test: Economists who study the perceived correlation wonder if it's so. The Fed's surprise half-point cut last week should yield more data for study.
• The Answer: Somewhere in the middle. While investors typically bid up shares after a cut, the long-term outcome depends on external factors.