The US Dollar has lost -23% of its purchasing power since 2020.
In other words, if your assets are up +30% since 2020, you have effectively just broken even in real terms.
Inflation has now been above the Fed's 2% target for 60-straight months, and the bond market knows this.
Own assets or be left behind.
It's official.
As the bond market "meltdown" accelerates, the average interest rate on a 30Y mortgage in the US is up to 7.45%.
That's up +150 basis points in 6 months and the highest since 2023, when inflation was at 6.4%+.
What is happening? Let us explain.
(a thread)