Inflation concerns are mounting, and as bond yields climb, anxieties among equity investors are also rising. In the fourth quarter, for the first time in this recovery, the pace of nominal GDP growth surpassed the labor unemployment rate (UR) indicating that cost-push pressures are likely to intensify (see our report “A Nominal Event” published 1/29/2018 for more detail about this indicator). This could further exacerbate inflationary pressures and accentuate concerns surrounding a highly-valued U.S. stock market.