Phil Rosen
September 1, 2026
Deregulation as Long-Term Bull Market Driver
TL;DR
Deregulation across financials, REITs, utilities, and small caps represents a structural tailwind for markets regardless of which political party is in power.
Key Takeaways
- 1Deregulation in financials, REITs, and utilities is creating unequivocal tailwinds for market performance
- 2Small caps are continuing to outperform alongside deregulatory policy benefits
- 3Deregulation persists across administrations because precedents prevent sudden re-regulation, whether under Republican or Democratic leadership
- 4Different administrations favor different types of deregulation—Republicans may favor financial deregulation while Democrats might favor alternative energy deregulation
- 5Policy-driven structural tailwinds support a long-term bull thesis independent of short-term tail risk concerns
Notable Quotes
“All that is is unequivocally a tailwind.”
“There's always a deregulation story depending upon who's in power.”
Chapters
1. Deregulation as Market Tailwind
Deregulation across financials, REITs, and utilities, combined with small cap outperformance, creates unequivocal structural tailwinds for the market.
2. Deregulation Transcends Political Cycles
Deregulation effects persist regardless of whether a Republican or Democrat is president because established precedents make sudden re-regulation difficult to implement.
3. Party-Specific Deregulation Strategies
Both parties favor deregulation but target different sectors—Republicans focus on financial deregulation while Democrats might prioritize alternative energy deregulation.
Glossary
- REITs
- Real Estate Investment Trusts; companies that own, operate, or finance income-producing real estate
- Tail event
- An extreme or unlikely market occurrence with significant potential impact
- Structural tailwind
- A fundamental, long-lasting positive force driving market or economic performance