It’s still a mystery… for now. The sharp divergence between rising stock prices and falling inflation expectations has persisted since February. It’s unclear what this striking uncoupling means, but surely it signals a change of one sort or another for monetary policy, the macro trend, the capital markets… all of the above? For now, the only point of clarity is that equities are no longer joined at the hip with changes in the market’s outlook for inflation. It’s the end of the new abnormal, the positive link in recent years between stocks and inflation expectations, based on the yield spread between the nominal 10-year Treasury and its inflation-indexed counterpart. The question is what comes next?