Real rates explain more market behavior than nominal yields when the inflation regime is unstable. What is happening: Nominal yields mix two stories together: the compensation for time and the compensation for inflation uncertainty. Real rates pull those apart. Why it matters: That separation is why growth assets can struggle even when headline inflation is falling: the discount rate that matters may still be climbing. In practice: When real yields rise while long-duration equity narratives stay optimistic, valuation pressure usually arrives before sentiment accepts it. Watch for: A common shortcut is saying "rates up, stocks down" without asking which part of the rate move is actually doing the damage. Useful lens: A useful review question is which funding, incentive or cash-flow channel is actually doing the work. A lot of confusion disappears once you separate the headline from the mechanism.