President Trump May Face a Lose-Lose Like Hoover's As of the end of 1H, the highest year-end US stock market valuation vs. GDP since Hoover was elected -- and vs. public debt in our database since 2003 -- may suggest risks of reversion. Surging energy prices pushed the latest consumer price index to 4.2%, but compared to the greatest wealth effect in roughly a century, energy inflation is proving transitory. My graphic highlights what could be a lose-lose for Republicans in the midterms and next presidential election: Inflation remains too high, yet the strongest force to bring it down may be a drop in US stocks, which at about 2.5x GDP, could fuel a recession. Affordability is a top election issue, and the new Federal Reserve chair has shifted focus to price stability. US Treasury bond prices could be bottoming from their lowest level vs. gold since 1987. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/thjih8vttczl {BI COMD} #gold #stockmarket @Bloomberg(Mike McGlone)