During the previous corrections since the 2007-09 bear market, the BBR dropped briefly below 1.00 and then rebounded sharply. Those corrections turned out to be brief panic attacks that quickly abated.
The current selloff isn’t a short-term panic attack like the previous ones. That’s because inflation has turned out to be a more serious problem than the issues that triggered the past panics. It has required the Fed to pivot from its ultra-easy monetary policies since the Great Financial Crisis to a tightening monetary policy.
