The equity market has not yet incorporated potential future interest rates of 1% to 3% into its valuation structure, indicating a disconnect in market expectations.

The current economic environment is reminiscent of late 2016 and early 2017, when the market was nervous about rising interest rates and potential tax cuts. Value stocks have surged, with energy stocks up 27% and financial stocks up about 11% year-to-date, while technology stocks have only increased by 1%.

The zero interest rate phenomenon led to unsustainable business practices, where companies that relied on cheap capital struggled when interest rates rose.

Once interest rates began to rise again, many investors who had entered the startup space during ZIRP exited quickly, leaving behind a volatile market.

Scaling negative margin businesses, like those seen in ride-sharing, has become more challenging due to rising interest rates and investor reluctance to fund such models.

The bond market is experiencing volatility, with record short positions as traders react to rising interest rates, indicating a potential pause in rate increases.

The rapid increase in interest rates from 0% to 5% was a significant danger sign for banks, and many were unprepared for the consequences of this shift.

Housing prices are increasing at a double-digit rate, indicating strong asset market performance despite recent volatility.

The rise of private credit and private equity has led to a significant decrease in the number of public companies, which raises questions about market transparency and the health of the financial system.