Will the Midterm Elections Trigger a Q4 2018-style Market Regime?

The U.S. economy faces systemic risks driven by a K-shaped divide, where wealth is siphoned from the labor class to the donor class through policy-induced corporate profits. Darius Dale, founder and CEO of 42 Macro, argues that the ongoing AI-related capital expenditure bubble is likely to precede a historic secular bear market, particularly as the 2028 election approaches. With the dollar facing persistent debasement, capital allocation into assets like gold and Bitcoin serves as a necessary hedge against fiscal instability. The current political landscape, increasingly functioning as a kleptocracy, requires a return to small-government, free-market principles to address widening inequality. Without fundamental reform to curb the influence of political donors, the nation risks significant social dysfunction, as historical patterns suggest that such extreme economic disparities often culminate in civil unrest or systemic collapse.