Compare this current situation with the bond market low (peak in rates) in 1981 which preceded a major low in stocks and the economy. A bond market peak now may also be preceding a major high in stocks and the economy. A supposed improving economy in the US is putting the Fed at ease so they'll probably raise rates just as stock prices peak. History will judge the Fed harshly, especially if stocks and bonds are peaking together.
After stocks peak, interest rates will keep rising and destroy the value of bonds which will only increase fears of default and pressure rates to go even higher. And so it will go until defaults inevitably start from junk all the way up to sovereign bonds. We've never experienced such asset and wealth destruction before in both major financial markets. Add another phase of declining property values worldwide and the looming global deflation will be one for the ages.
