Stocks, the worst is yet to come. There is only one reason

Stocks can still fall and the scenario is becoming very gloomy.
David Neuhauser, chief investment officer of the hedge fund Livermore Partners, said this on CNBC.
His is not an isolated warning and rather takes place in a context of very cautious and at times pessimistic comments on the near future of risky assets.
The intensifying bond rout is increasing pressure on the global economy and creating a “tremendously dangerous” outlook for stocks, one expert said.
In the US Treasury market – a crucial component of the global financial system – bond yields have risen to levels not seen since the global financial crisis.
In Germany, Europe's largest economy, yields have reached their highest level since the 2011 euro zone debt crisis.
And in Japan, where interest rates are still below 0%, yields have risen to record highs.
2013.
All this can only have repercussions on the global economy.
And on shares, seen in great difficulty.
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What is about to happen What is happening in the markets and why stocks are in danger The central theme of investors in recent weeks is the bond market and what can happen due to increasingly higher yields.
The consequences, obviously, are ready to overwhelm the actions and are already partly doing so.
A new era of higher interest rates has caused a surge in bond yields, upending the status quo of the past decade and a half, David Neuhauser noted.
The change underway is important: “We're in this world of risk where, for almost 15 years, there's been a bull bond market and negative rates for several years.
That dynamic fueled the entire global economy, where home prices were affordable, cars were accessible, and people were subjected to an environment and lifestyle that had much lower interest rates.” This environment has changed as central banks have pushed forward with rate hikes to counter rising inflation.
This, in turn, pushed up bond yields and took money out of government budgets by raising borrowing costs.
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Buying opportunity or new collapses in sight? These fiscal imbalances are giving “a lot of ammunition to bond bears,” the hedge fund manager added, with interest rates likely to remain higher for longer.
“What you're seeing now with the bond market is that bond vigilantes are back in vogue, back from the '80s, back from the dead, and I think they're the ones driving the market today,” Neuhauser said.
These higher rates will weigh heavily on consumers and businesses according to the strategist: “I think this will cause a lot of pressure on the credit markets, it will cause a lot of pressure on consumers going forward.” Businesses will also struggle due to high debt and refinancing costs.
What potential risks? All this will cause a downward trend in the economy and will also damage the stock market, as is starting to be visible even today.
The stock plunge will only get worse.