A useful way to think about this: real rates explain more market behavior than nominal yields when the inflation regime is unstable. Desk note: Nominal yields mix two stories together: the compensation for time and the compensation for inflation uncertainty. Real rates pull those apart. Why investors care: That separation is why growth assets can struggle even when headline inflation is falling: the discount rate that matters may still be climbing. Translate it into behavior: When real yields rise while long-duration equity narratives stay optimistic, valuation pressure usually arrives before sentiment accepts it. Where people usually get tripped up: A common shortcut is saying "rates up, stocks down" without asking which part of the rate move is actually doing the damage. Keep this nearby on the next review: Before reacting, ask what mechanism would still matter here if the headline disappeared tomorrow. The point is not to memorize the label. The point is to know what variable is actually doing the work.