During my recent segment on Fox Business “After the Bell,” I touched on the latest market action and talked about what could threaten recent highs. I offered our perspective that valuations aren’t what’s worrisome. We believe that the main risk to the markets is the potential for higher inflation. Janet Yellen recently stated that macroprudential regulation is how the Fed will deal with instability rather than raising rates, which means that if inflation starts, the Fed won’t intervene and that would be bad for PE numbers. Watch a clip from the segment below for more insight.