As the economy slows, an epic climb in short-dated rates and bond yields appears to have shocked investors into accepting the prospect of stickier inflation, but they still seem reluctant to price for substantially lower earnings.

"Opportunistic investments are beginning to develop, but patience could be a virtue in this environment; it is likely to contain a lot of falling knives, while also giving investors time to seek opportunities when the market begins to show signs it may have reached its trough.”