Darius Dale recently joined Maria Bartiromo on Fox Business Network to break down why investors should stay long risk assets amid a historic policy shift. The multiple hundred-plus billion dollar investment commitments stemming from Trump’s reciprocal tariffs—paired with sweeping deregulation and tax incentives—are reinforcing the pro-growth “Paradigm C” regime 42 Macro has championed since late April.
If you missed the discussion, here are three key takeaways that likely have huge implications for your portfolio:
1) Paradigm C Remains The Modal Outcome
The Trump administration’s strategy is to grow its way out of the debt problem through a combination of broad-based deregulation, tax cuts, and a wave of foreign direct investment into the U.S. (reshoring). Investors who stand in the way of this growth agenda will lose money over the long term, and many are still under positioned for this durable, positive shock to growth.
Key Takeaway: Paradigm C policies are structurally bullish for growth over at least a 12–18-month time horizon, and positioning should reflect that.
2) The Fed Is Already Behind The Curve—Rate Cuts Are Overdue
Darius labeled the Powell Fed’s current stance as its fifth major policy mistake, noting that rate cuts should have already been implemented—a view his former client, Treasury Secretary Scott Bessent, agrees with. He sees markets looking ahead to a potential new Fed chair under President Trump—one who understands the need for lower rates and a higher inflation target.
Key Takeaway: The Fed’s delay in cutting rates risks a faster growth slowdown, but markets continue to rally behind anticipated change at the Federal Reserve.
3) Every Dip Is A Buying Opportunity Amid Paradigm C
Rather than reacting to each trade headline in isolation, investors should see the Trump administration’s aggressive trade strategy as part of a broader, intentional policy sequence that is drawing record foreign direct investment back to the U.S. This context is essential for navigating short-term volatility while staying aligned with the structural growth tailwinds of Paradigm C.
Key Takeaway: Investors must keep the broader framework of Paradigm C at the forefront during any corrections that may materialize in the coming months.
Final Thought: “KISS” Your Portfolio Before It’s Too Late
The Fed’s reluctance to cut rates risks compounding policy error, even as deregulation, tariffs, and record investment inflows continue to power Paradigm C’s pro-growth trajectory. In a market shaped by rapid policy sequencing and shifting monetary dynamics, investors need a framework that filters out headline noise and stays aligned with the regime’s enduring tailwinds.
If you are not confident your portfolio is positioned correctly for the evolving macro landscape, partner with 42 Macro for data-driven insights and proven risk management overlays—KISS and Dr. Mo—to help you stay on the right side of market risk.
No catch—just real insights to help you stay ahead in the #Team42 community.
Best of luck out there,
— Team 42
