In the summer of 2020, Larry McDonald, New York Times bestselling author and publisher of The Bear Traps Report, argued that technology stocks would be vulnerable to a rise in interest rates. Now that his prediction has played out, he returns in this conversation with Real Vision’s managing editor Ed Harrison to update his thesis on growth stocks, yield curve control, and commodities. Filmed on March 15, 2021.

Key learnings: McDonald argues that the Federal Reserve has no choice but to prevent the bond market from derailing the economy. He expects the Fed to issue calendar guidance, give assurances on their balance sheet, and even (perhaps) indicate a willingness to experiment with yield curve control. In this environment, McDonald expects a rotation out of big tech and into cyclical and value sectors of the market