The Fed’s medicine is working: Brown Brothers

Investors are too pessimistic about the US economy, reflected in undervalued corporate bonds issued by the financial sector, says New York-based Jeffrey Schoenfeld, partner at Brown Brothers Harriman. Fears of a sovereign crisis are overdone, which explains why global investors continue to pay the US government to take their money, in real terms: the 10-year Treasury yield of about 2% is negative when adjusted for inflation. Nominal 10-year Treasury yields historically track nom…