Editor's Note: Below is Senior Macro analyst Darius Dale's recent appearance on CNN Business's "Markets Now" segment.
CNN Host Julia Chatterley: So you’ve been saying for the past few months now that the best growth that the United States has had is kind of behind us. And we’ve seen that in the GDP data. If we do see some kind of infrastructure agreement, or some type of stimulative vote, shouldn’t that be something that would support equities here and support growth here as the tailwind from the tax reform in 2017 is rolling off.
Darius Dale: Totally. And we better get an infrastructure bill here if you’re long Tech, Industrials and all these things that have really benefited from what has been a two and a half year run-up in GDP growth. A three year run-up in inflation and a multiyear run-up to all-time highs in corporate profit margins.
Now, you roll the clock forward over the next 12 months, those three things are almost certain from a probabilistic perspective to rollover from their respective peaks. So I think we better get an infrastructure deal otherwise we’re going to see lower lows in a lot of these different style factors.