Shooting in the Dark: Why Growth Isn't Growing Right Now

Here's the way it's supposed to work:

The U.S. economy gets a little too heady for the Fed's taste, so interest rates rise. This slows growth, and the stocks of companies whose fortunes rise and fall with the U.S. economy -- the cyclicals and value stocks -- get hurt. Investors put money into growth -- the stocks of companies that will continue a strong growth rate even in an economic downturn.

The U.S. economy cools a little too much -- maybe even goes into a recession -- and the Fed starts slashing rates. As it becomes clear the economy is rebounding, investors pull money from growth and ride cyclical and value stocks higher. ...