The bond collapse could get worse, if interest rates continue to climb. The bond market (if I understand correctly) doesn't think it will, projecting that rate

The bond collapse could get worse, if interest rates continue to climb. The bond market (if I understand correctly) doesn't think it will, projecting that rates will drop after 1 to 2 years. If they're wrong, then bond prices will not collapse, they will move to the level implied by the interest rates. Stock prices should reflect the present value of expected future earnings, with a risk premium. "Present value" takes into account expected interest rates. Stocks were high because, in a zero interest environment, future earnings were not discounted (other than for risk). The question now is, is that coming back, or is it gone for good? If it's gone for good, stock prices should fall to reflect that. That won't be a "collapse", exactly, but it will be a correction.