News Summary

• In their preoccupation with high public debt, rising bond yields, and dizzying AI valuations, investors have seemingly forgotten the supply shocks shaping the underlying inflation outlook.
• Anyone worried about debt and yields must reckon with the disruptions created in the name of protecting domestic markets.
• It was only a few months ago that investors were preoccupied with US tariffs and the closure of the Strait of Hormuz.
• But these issues have since receded from the forefront of our concerns, overshadowed by anxiety over the AI boom and possible bust.