Financial markets are not as simple to understand as they may appear on face value. There are so many variables and inputs that go into the price of something. Not the least complex is property. There are a multitude of factors that influence the price of property, from supply, demand, immigration, demographics, zoning/re-zoning, rent, lifestyle, fear, greed, ego, and the cost of debt. Especially in Australia, debt is a big one. It has been a large factor in dictating prices.

Hence, if it requires, say, a thousand years to fit for easy flight a bird which started with rudimentary wings, or ten thousand for one with started with no wings at all and had to sprout them ab initio, it might be assumed that the flying machine which will really fly might be evolved by the combined and continuous efforts of mathematicians and mechanicians in from one million to ten million years — provided, of course, we can meanwhile eliminate such little drawbacks and embarrassments as the existing relation between weight and strength in inorganic materials. - The New York Times, 1903

If 2020 wasn't wild enough for investors, welcome to 2021. From one extreme of lower rates for longer, to inflation fears and rising interest rates, investors have their work cut out for them.

You'd be forgiven for having missed the rise of longer-term interest rates in the US with all that is making headlines presently. In fact, the US 10Y-2Y yield curve is the steepest in almost 5 years. Why is this important you ask? Well, it depends on who you ask. Bulls will tell you it's a sign of recovery, and the bears will tell you this is the beginning of decline in stocks. Sentiment Trader recently shared their analysis, so I decided to take a look myself.