Inflation Fears Fuel Rotation Out of Growth Stocks

Investors increasingly fear inflation and its impact to both stocks and bonds. Bond investors are demanding higher
yields to compensate them for inflation’s effect on purchasing power. This impacts stocks, because higher borrowing
costs from rising yields make corporate debt more expensive. Stock valuations, which are currently at levels not seen
since the dot-com bubble, also must be adjusted for the rising costs and this is especially bad for technology
companies.  Read full commentary:  Mid May Commentary