NEW YORK – Yes, it’s possible to have too much of a good thing, and that’s exactly why stock markets around the world are getting so unsettled.
Optimism for an economic revival is surging following a year of coronavirus-induced misery. But expectations for stronger growth — plus the higher inflation that could accompany it — are pushing interest rates higher, which is forcing investors to re-examine how they value stocks, bonds and every other investment.
When it tries to figure out the value for anything from Apple’s stock to a junk bond, the financial world starts by comparing it against a U.S.
Treasury bond, which is what the government uses to borrow money. For years, yields have been ultralow for Treasurys, meaning investors earned