Insights

While 42 Macro continues to believe the current AI investment boom exhibits the characteristics of a bubble, history suggests investors should not attempt to time its end. Instead, our systematic KISS and Dr. Mo positioning models remain the appropriate guide for determining when risk should be reduced.

At the same time, Q2 earnings season presents a growing risk of a transitory “sell-the-news” correction as elevated AI expectations collide with the potential for downward revisions to AI capex forecasts.

On the Federal Reserve, although our new multi-factor Fed Decision Tree Model continues to indicate policymakers should remain on hold over the next year, the FOMC may still choose to “play-action pass” by tightening cyclically in order to create the credibility needed for significantly…

Darius Dale joined Maria Bartiromo on Fox Business to discuss why the current bull market remains intact despite geopolitical uncertainty and a seemingly hawkish Federal Reserve. He argued that investors continue to underestimate the power of Paradigm C and the long-term implications of Kevin Warsh’s evolving policy framework.

If you missed the discussion, here are three key takeaways that likely have huge implications for your portfolio:

1) Paradigm C Continues to Drive Markets Higher

The market’s strength can be attributed to the same bullish Paradigm C thesis that 42 Macro has been highlighting since near the “tariff tantrum” lows of last April. With fiscal easing, monetary easing, and regulatory easing occurring simultaneously, investors remain…