The global economy has entered the second half of the year with surprising strength despite two wars, sharply higher energy prices and persistent geopolitical disruption. Rather than triggering a broad slowdown, the shocks have so far been absorbed by an economy being powered by corporate investment, artificial intelligence and rising defence spending. That resilience, however, is creating a different problem. Strong growth is keeping inflationary pressures alive and pushing interest rates and long term bond yields higher. For investors, the danger is that the economic heat that is supporting markets today could eventually ignite financial instability. [...]