Finance
The Economy Looks Set to Roar, and That Worries Investors
Rising Treasury yields are roiling bond markets. But there’s little sign of inflation, and the economy has a lot of lost ground to make up.
Photo Illustration by 731. Photo: Alamy Stock Photo
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Before we talk about what’s going on in the stock market—and why it’s whipsawed so many investors even though the S&P 500 index is near a record high—we have to talk about bonds.
U.S. Treasuries are probably the world’s most important financial market, but it’s easy to forget about them when they’re well-behaved. When prices suddenly drop, which causes their yields to rise, for many professional investors it can seem like Godzilla poking his head above water off the coastline: Time to run and hide—trouble may be coming.