The Stock and the Bond Market Are Interpreting Inflation Completely Differently

“Don't wait for the change of circumstances. You change the circumstances” ― Jackie Chan

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A hot wholesale inflation report on Wednesday made it clear that higher energy prices are raising the price of goods and services across the economy – and that this might not be just a one-off. The stock and bond market seem to be in disagreement about just how serious the problem could be. 

The producer-price index rose 1.4% from a month ago. It h...

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