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The bond market demands a higher yield due to rising public debt (Debt/GDP ratio) and inflation above 5% is always a scenario that markets punish!

For now, the short-term dynamic is clear. But if yields get closer to that 5%, it will become much more pronounced. And the sector "winner" of all this, will be energy ($XLE)

[LINK] Something changed in 2022! Macro Regime Shift! After COVID, which was one of the biggest fiscal stimulus and money printing.