2017-01-23 — caseyresearch.com
... 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.
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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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