The Importance of Government Bonds and Bonds in the Economy

There's been a positive correlation between bond prices and equity prices for the last 100 years. But in inflationary periods, what we tend to see is interest rates increase,. equities go down, bond prices go down. Markets are starting to figure out that this unprecedented wave of fiscal stimulus is going to have to be funded by government's issuing debt. And then finally, you're likely to get a bit of an inflationary pulse building.