Wall Street pundits often marvel that investors pay so much attention to the stock market and so little attention to the bond market. They compare the stock market to the little cherry on top of a huge ice cream sundae or the bond market. Investors fret about the cherry and not the underlying ice cream.

The relationship is not always logical. For example, sometimes the monthly “jobs report” shows the economy created more jobs than expected, sometimes way more. In other words, it suggests the economy is stronger than expected. Now, if the economy is stronger than expected, you would think there is less risk, and interest rates should reflect that by decreasing. That usually happens . . . but not always.

However, when the stock market expects interest rates to decrease, like it does now, the stock market can be disappointed, and its not nice to fool mother stocks. Since a decrease in interest expense on corporate income statements, it drives up next income and thus the value of the stock. The reverse is also true.

If interest rates don’t decrease, disappointing the stock market, share values often fall below expectations . . . time to sell?

This week, we are at a particularly volatile time. On Wednesday, we will learn the latest inflation report and, separately, the expected decision from the Fed on interest rates comes on Thursday. The bond market will take a few days to digest any conflicting data. The stock market, however, is “ready, fire, aim” instead of “ready, aim, fire.”

Remember, it is unusual to have two such important economic reports on two consecutive days, and I will be watching for a buying opportunity in stocks this week.

The cherry may wobble on top of the sundae this week, but fear not . . .