... inflation started picking up last summer... It's now rising at the fastest rate in five years. MarketWatch reported last week... A string of sharp gains since late summer helped drive up inflation by 2.1% for the full year, marking the biggest increase since a 3% gain in 2011. Americans are pay[ing] more for fuel, housing and doctor visits, countering the biggest decline in grocery prices since the tail end of the Great Recession.


It won't take much inflation for bondholders to take heavy losses, either... Take the U.S. 10-year Treasury, which is supposedly one of the "safest" bonds you can own. It currently yields about 2.4%. That's about half its historical average. Corporate and municipal bonds are also yielding near-record lows. This makes them incredibly vulnerable to inflation.

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