It’s all good in the Three Bears’ house (bonds, stocks, and commodities), at least according to Goldilocks.
That’s because what’s “just right” is the bond market.
The highflying bond market pushes stocks higher and keeps commodities from being too hot or too cold.
But the bond market can’t carry the weight of the world forever.
Eventually, or suddenly, yields will start rising, maybe from inflation, maybe from central banks “normalizing” yield curves, or maybe frighteningly quickly from bond vigilantes selling them down.
And when rates rise, stocks are going to take the brunt of the bloodletting.