Bonds are caught between inflationary pressures (negative) and growth risks (positive). This tension is viewed as unsustainable and likely to resolve with yields falling, as either inflation abates or a prolonged disruption forces a focus on severe growth risks.
Stocks can remain stable despite major short-term disruptions, like an energy crisis. Their valuation is based on the discounted value of all future earnings, making a single weak quarter mathematically less significant if the long-term outlook remains intact.
Despite higher earnings growth and low energy exposure, large-cap technology stocks have derated significantly. They now trade at valuations comparable to the much slower-growing consumer staples sector, presenting a potential relative value opportunity.