"[T]he peak in interest rates always precedes the long wave peak in stock prices by many years. When interest rates and the stock market are both rising together, the industrial growth component is dominant. The period after interest rates peak is when stock prices rise as an alternative investment. During that period declining interest rates force yield-conscious investors into alternative investments of lesser quality in order to maintain yield. Since stocks are the most risky and least quality investments, they become the final alternative, especially when their price continues to appreciate as a result of increasing cash flow into the stock market."We've gone through all the stages of Dow's theory.