Inflation came in hot and interest rates are climbing, which is bad for stocks, jobs, and anyone counting on their retirement savings.

• Consumer prices rose 3.7% over the past year, with gas prices driving half the increase.
• Rising rates pulled the S&P lower, and the warning is that a 20–30% drop in stocks is coming.
• BlackRock has told clients to sell stocks and sit in short-term bonds to stay liquid; Berkshire Hathaway cashed out long ago.
• When stocks fall, banks stop lending, and that is when job losses and home losses follow.
• Gold will eventually rise, but it is likely to fall first as the selling spreads across markets.

Outlook: Expect a few months of sharp pain, then heavy government stimulus and a push to pump stocks and crypto back up.