A major credit accident is unavoidable and stocks will drop sharply when it happens.

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by mrmrmrj

As you can see from the chart, a rise in bond yields typically ends with a financial accident. The most recent example is the 2018 global selloff that was sparked by the US Federal Reserve raising interest rates and scaling back its quantitative easing program. This led to a sharp increase in bond yields around the world, which caused widespread panic selling in equity markets.

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