Is it too late to position for Paradigm C?

This podcast examines the current shift from Paradigm B to Paradigm C in U.S. economic policy, highlighting why it isn’t too late for investors to position themselves for growth. The discussion covers the implications of the recent U.S.-China tariff truce, signs of a pro-growth policy pivot by the Trump administration, and the resulting market behavior. Key points include a transition toward risk-on assets—favoring cyclicals, SMID caps, and spread products—supported by fiscal stimulus and deregulation, as well as insights from several quantitative models such as Dr. Mo, the Macro Weather Model, and the GRID Model. The conversation also addresses risks such as potential political miscalculations and policy reversals, emphasizing how persistent deficits and market uncertainties might disrupt the momentum. Overall, the podcast provides a comprehensive analysis of the opportunities and challenges in positioning for a pro-market, risk-on regime.