Stagflation, an unwelcome mix of higher inflation and weakening economic growth, is one of the worst possible outcomes for investors because it can shrink corporate profits, cause both stock and bond returns to fall, and stifle policy options for the Federal Reserve. The producer-price index for February was released early Wednesday, reinforcing market participants' concerns by showing the cost of wholesale goods and services climbed for the third month in a row. Wholesale inflation jumped 0.7% for the biggest increase in seven months, while the monthly core figure rose a sharp 0.5%. In response, the 2-year Treasury ... (full story)