Advisors and investors who have spent the last two years looking for income are big-time losers—they just don’t know it yet. That’s what Richard Bernstein of the eponymous advisory firm told attendees at a press luncheon sponsored by Eaton Vance on Wednesday.

“In 2000, advisors didn’t want income,” Bernstein recalled. Now, after a decade of historically low interest rates, income is the primary goal of many advisors and their yield-starved clients.

“People don’t realize it yet, but when they start looking at total returns” it will hit them, he continued.

Since June 2016, everyone has been “worried about inflation returning,’ he continued. In the intervening time period, bonds have fallen about 2 percent or 3 percent, stocks are up about 45 percent and commodities are up about 15 percent.

“Bonds are as risky as tech in 2000” or housing in 2006 and 2007, Bernstein said.

Kathleen Gaffney, a vice president and director of diversified fixed income, agreed and said investors should be wary of taking duration risk. With budget deficits climbing, Gaffney added she’d “bet on a weaker dollar.”

In Bernstein’s view, investors have a series of misconceptions that will hurt them sometime in the near future. Their views on technology stocks and emerging markets top his list.

“People say they are high-growth investments” when in reality they are deep-cyclical investments, he explained. Technology, in particular, has gone for entire decades like the 1980s and the 2000-2009 era when it underperformed the major indexes.

As for emerging markets, they are really a play on global growth. “If you think global growth will accelerate you want to own them,” he said.

Showing his contrarian stripes, Bernstein said investors and markets might be excessively bearish on China. “There is a hard-core consensus that China is toast,” he said. “I wouldn’t be so sure.”

Bernstein and other Eaton-Vance managers offered divergent opinions on several issues.  “Profits, not politics, drive the markets,” he declared

Gaffney disagreed, saying politics is a “bigger part of investing than it was 20 years ago” and that is primarily due to fiscal policy. The U.S. is in the middle of a transition from monetary policy to fiscal policy as the major driver of the markets, she added.

Gaffney believes the effects of fiscal stimulus are still in the pipeline and will drive interest rates higher. Investors must “make a decision about how a secular rise’ in rates will influence their portfolio decisions, she said.

In her view, this means competition for capital and other resources will increase. Gaffney also said she was confident the U.S. economy could handle a sustained rise in 10-year Treasury yields to the 4 percent area.

On the subject of China, Gaffney voiced concerns about the world’s second largest economy opening up its capital markets to foreigners. There is “no rule of law’ and they are “transferring country risk to foreign investors,” she said. As a fixed-income investor, that’s scary.

On inflation at least, the fearmongers may have a real concern. Gaffney did agree with Bernstein that all financial markets are way too complacent about the ability of inflation to stage a comeback.

It might be the single-biggest risk facing investors and the reason why investors chasing income could be in for a rude awakening, Bernstein said.

Gradual increases in interest rates are good for equities, Gaffney said. Bernstein added that the 10-year Treasury bottomed out at 1.35 percent and now stands at 3.15 percent—the same exact numbers, just rearranged.

Meanwhile, the stock market is up. “Rising rates themselves are not a catalyst for bear markets,” Bernstein noted.