In looking at what ails Canadian equities as the S&P/TSX continues to struggle, National Bank of Canada (NA.TO) says its latest \Monthly Equity Monitor' for March, April 2018 the answer is P/E compression due to NAFTA uncertainty and household debt. But, National said, it is important to remain on the watch for any unexpected pickup in inflationary pressure that would compromise the profit outlook by pushing the 10-year Treasury yield above the comfort zone of the economy. It said: "Central bank commitments to normalize monetary policy very slowly imply a tolerance for inflation that is likely to benefit bullion.