Markets on Fire: Deregulation, Speculation, and the Road Ahead

Anchored in promises of sweeping deregulation, the Trump administration aims to roll back federal oversight, with the Department of Education reportedly among the first casualties. This bold move signals a broader effort to reduce government spending and empower market dynamics.

Against this backdrop, the fiscal reality remains stark. The U.S. government spends $1.30 for every dollar it earns, a figure that rises to $1.50 during economic downturns. Despite this imbalance, the markets are reveling in the prospect of deregulation-driven growth, with the S&P 500 recording an unprecedented 51 all-time highs in 2024 alone—a feat comparable to its stimulus-fueled rally in 2021.

Market Euphoria: Winners and Outliers