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Bonds Aren't Necessary to Fall 20% in 2022
Bonds, prices drop when rates go up. They're the same thing, right? So we had 14 years of ultra-low interest rates. And then we saw inflation increase. Of course, that was partially driven by $2 trillion in COVID stimulus,. Yet now rates are going up at the fastest rate since 1981. There is a new regime. And that regime is called higher real rates and it's what Jim Bianco has talked about.