Markets History 101: It’s Time to Buy Bonds

The market narrative is obvious after a twin inflation and interest-rate shock crushed asset prices: nothing else much matters.

The parallels from history are equally obvious. In 1973, the Arab oil embargo trashed the economy and led to sharp interest-rate rises, while in 1980 rampant inflation worsened by another oil shock was accompanied by then-Federal Reserve Chairman Paul Volcker’s aggressive rate increases. Russia’s invasion of Ukraine was followed by the Fed’s fastest rate rises since Mr. Volcker was in charge.