Interesting ChartThe chart below shows a time series of the relationship between inflation, nominal interest rates and real interest rates(nominal interest rates - inflation).
What is most striking to me about this chart is that there are two periods of time in the last 50 years where real interest rates were at the same level as were are experiencing today. In both of those periods we saw a significant retraction of stock prices of in and around 50%.
Will this happen this time?
Who knows? But IMHO it is worth thinking about this in terms of your investment strategy. As the old saying goes "history may not repeat itself but it certainly rhymes"!!! Those that ignore this do so at their peril.
https://www.longtermtrends.net/real-interest-rate/