The Bond Market is Losing It

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Few if any in all the world understand the bond market. Certainly not we here on this podcast. Like a vast ocean on the earth, the bond market contains multitudes and governs equities in ways we fail to understand everyday. And yet we barely ever speak of it except to note the 10 year yield as an input for stock valuations.

But when rates surge as they did this last week and the fabled yield curve teeters on inversion, we must take note. And if Jim Bianco is right, the world of credit has figured something out that the stock market hasn't. 

In practical terms it means that in 2022, as Thomas Thornton says, we must focus on the tactical short-term trade to find any luck. For volatility will reign in concert with uncertainty.