Many market observers are now trying to gauge economic data to prognosticate the future path of the markets as U.S. equities look expensive relative to historical averages, especially after many trimmed expectations for pro-growth policy changes out of the Trump administration.

“Right now, better economic data and earnings have given the Trump agenda the benefit of the doubt, but at some point, stocks will need that catalyst from fiscal stimulus and deregulation,” Michael Arone, chief investment strategist at State Street Global Advisors, told the Wall Street Journal.

Fed Bank of St. Louis President James Bullard, though, stated that the new administration will eventually need to fulfill the bullish expectations that have driven markets higher.

“Washington does have to deliver at some point,” Bullard told Bloomberg TV. “That is a concern going forward, whether the honeymoon period would end at some point and maybe the reality of American politics would settle in.”

For more information on the markets and U.S. Stock ETFs, visit our S&P 500 category.