Inflation Suggests Lose-Lose From Running Too Hot The repercussions of 'running it hot' to lift all boats may have shifted unfavorably for most asset prices and incumbent leaders due to a key force -- inflation. My graphic highlights the rising consumer price index alongside a surging US stock market cap-to-GDP and President Trump's plunging job-approval rating. Midterms are in November, affordability is a top issue and consumer sentiment is very negative, notably due to the US-Iran war and inflation. Spiking energy prices have buttressed inflation recently, but the Bloomberg Energy Spot Index's rebound to a level first reached in 2005 points to a deeper underpinning of consumer prices -- the record-setting stock market. At about 2.5x vs. GDP, the stock market may have become the economy. Some normal reversion could entail a deflationary recession. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/tgb2hdkip3iw {BI COMD} #stockmarket #crudeoil #energy #inflation @Bloomberg(Mike McGlone)