That's why the market fell to new lows this week when the Fed raised interest rates by a quarter point on Wednesday and turned especially weak specifically when Fed chief Jerome Powell said the unwinding of the central bank's balance sheet would continue at its current pace.
"We continue to expect the Fed will hike next year until they break something. The reversal in equities is not the magnitude that has historically led the Fed reverse their policy, so there's still room to go," Lyngen said.
When the success of every asset class is linked to low interest rates and Fed stimulus, when that reverses, there's nowhere to hide. In the past when rates increased (hurting bonds), the economy was strong enough to boost earnings for companies and therefore equity prices.
That may not be the case right now.