russ koesterich is with blackrock. why are stocks higher? shape. earnings are still doing relatively well. with 15,no competition 16, 17 trillion of the global bond market trading in a negative rate. tom: in the last 90 days i have seen a new understanding of an inertial force to a terminal assetthat r-star, across classes, of lower rates, lower gdp, flip the reciprocal, up go equities. what is the downside? russ: eventually the valuation can get away from you. one of the reasons growth stocks have led so consistently this recovery is these are long-duration assets. we keep taking the discount rate lower and lower. francine: what will change? if you look at earnings going forward, is that when we hit a snag? will they continue cutting costs or will the economy hold steady? russ: i think it will hold steady. we have talked about earnings taking a pickup -- hiccup. some of the things people were worried about, margin compression, there has been a bit of that but not as much as people thought. secularn ability of the world's and health care on