Deficits exploding, AI turning inflationary, commodities ripping, and stocks pretending none of it matters. Historically, this movie ends with equity investors learning what duration risk actually means.

Treasury yields have climbed to their highest levels since 2007 as the relationship between equities and bonds turns sharply negative.

The problem for equity bulls is that violent AI melt-ups become much harder to sustain once rates volatility starts breaking higher.

Deficits exploding, AI turning inflationary, commodities ripping, and stocks pretending none of it matters. Historically, this movie ends with equity investors learning what…