Even If This Is a Bond Bear Market, Things May Not End Badly
- The 2013 taper tantrum and 1994’s crunch offer lessons now
- Bond market carnage, when it happens, doesn’t equal recession
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The question of the day is whether we’re in a bond bear market. After all, we don’t even know what one looks like.
I was on record a month ago saying 2022 would see a prolonged downturn. So, I think the answer is yes, we seem to be in a bond bear market. That means there are two important episodes to keep in mind now: The 2013 “taper tantrum,” and the bond market massacre of 1994.