A Financial War With No Winners
So, maybe the stock market is looking at this situation, too. And maybe it sees stocks as a protection from inflation…maybe it's guessing that an investment in a profit-making business is a better place for money than a bank account. Maybe it wants to go up because of inflation…and wants to go down because of a coming slump. In the end, it goes nowhere.

And maybe the bond market sees the same picture. Maybe it sees a slowdown…which would be good for bond prices…but rising rates of inflation too, which would be bad. What should it do? It doesn't know any more than anyone else. So, it bides its time, waiting to see how the war will turn out.