Yep. Proof of the fallacy that stocks fall as rates rise.

Generally speaking stocks rise with rates and bonds rise with stocks.

These two points above are the basis of “Normal” functioning markets.

However, MSM falsely portrays that it is normal for stocks to fall when rates rise and for bonds to rise when stocks fall. At some point stocks do fall bc of high rates, when they are above 4-5%.

Their view does happen in deflationary markets which we have been in since 1997. They do not happen in inflationary markets which entered into around 2015 and confirmed around 2018.

The reason so many are caught off guard is because our entire careers or large portions of it happened in an abnormal, deflationary market.

Originally posted Oct. 2018.