One reason (some) stocks don’t necessarily have to go south; if a stock, say a consumer staple, is deemed to have inflation linked cash flows, then you could argue that you should use real rates instead of nominal rates in your discounting of future cash flows, which can help explain some valuations since real rates are much lower than nominal. When we hear stories of retail investors piling into stocks despite the higher bond yields, I think it can at least partially be interpreted as retail investors having lost faith in the durability of cash - ie their personal expectation of the future real rate is much lower than market pricing. I honestly can’t blame them given how history has played out so far