There's only one thing that can rescue stocks from a trade war disaster

US stock valuations are at historically high levels by most measures. According to Jurrien Timmer, director of global macro for Fidelity Investments, the possibility of higher trade tariffs could put pressure on valuations. Timer writes, "Historically, tariffs levied on trade have been inflationary, and we know that there is a consistent inverse relationship between P/E ratios and inflation."