- Prices in government bond markets around the world dropped this week and yields soared as investors focused ever more closely on the potential for inflation to come roaring back in the second half of the year, if not sooner.
- If the Fed is truly content to sit back and watch intermediate and long-term interest rates rise further, there is potentially a tipping point where those higher rates have a real effect on stock price valuations.
- All else being equal, higher rates depress the value of future cash flows that factor into share price calculations.
For further details see:
Tantrum Without A Cause