I think the rates are ahead of reality. Far ahead. I expect the damage from the pandemic is not fully known yet and will be incredibly deflationary, despite the stimulus. There is a lot yet to be worked out in terms of real estate, a huge economic sector, and retail.
Plus the increase in minimum wage, which I do not believe will actually be hugely inflationary, once it is absorbed, has not happened yet and may not happen for a while. Plus it is staggered and delayed.
I think the market is sometimes too smart for itself. We’ll see.
The volume here has been low, yet MM’s are walking it down, and I agree, it’s intended to shakeout shares from the hands of the weakest holders and from late investors.