The cost of capital is reacting to the Fed’s hawkish tone with treasury yields, corporate yields, and mortgage rates all up significantly since September 2021. But a disconnect between the discount rate and the earnings yield could result in a reverse wealth effect. We’re joined by Fidelity’s Director of Global Macro, Jurrien Timmer, to discuss what all of this means and to make sense of the current market environment using historical analogs. Per usual, Jurrien has a few charts so please head to @TimmerFidelity to follow along.

Recorded on April 11, 2022.

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