1. Interest rates creep higher, then sky-rocket
2. Interest rates stay here, for what will feel like forever.
In both cases, where does the inflation go? I can make arguments for homes crashing and energy costs doubling. I can make arguments for homes taking off in price, with energy costs hitting all-time lows. The one thing I can not make a case for, is stocks crashing, energy crashing, and homes crashing. Similarly, energy, stocks and homes all can’t take off in price.
There is no recovery ahead. Only money flow.
Straddle oil. Straddle stocks. Straddle the long-end of the curve. (?)