Analysts are scratching their heads trying to figure out why stocks aren’t more freaked out by the sudden move in short end of the rates curve lately, sounding the alarm about the divergence between what’s happening in the rates market versus the stock market. But no one can fully explain the disconnect, reports an article in Bloomberg’s Odd Lots column.

A simple answer would be that the economy is thriving and earnings are strong, despite the ongoing supply chain problems, issues with rates and central banks. But many strategists think stocks will continue to deteriorate as growth also slows down into next year.

The article points to Citigroup strategist Matt King and his argument that rate hikes actually aren’t tightening if they aren’t keeping pace with the anticipated inflation. So the market isn’t actually pricing in the kind of movement that would significantly slow down growth or inflation. If King is correct, the real question would be if the Fed, along with other central banks, crank up rate hikes to combat inflation, resulting in a disordered rate cycle. That’s when, according to King, things could get “gnarly.”