Leading Wall Street strategist Jason Trennert shared his market and policy outlook and revealed why large-cap tech stocks may be in for a rude awakening in an exclusive interview for CNBC PRO with Mike Santoli.

On what the bull market needs to stay alive: “I think you need a catalyst because valuations are at the point now where, in my opinion, where it’s going to be difficult to get sustainable earnings growth without capital spending,” said Trennert. “Capital spending drives productivity, and capital spending is also very much driven by business confident.”

“The global growth story helps, but what I think would help a lot more would be actual, tangible evidence of some sort of tax relief if not outright tax reform.”

On new risks to big tech: “One thing I do believe is that the FANG stocks, I personally believe, there’s more regulatory risk in those stocks than there has been. I think in the last administration, the Obama administration, financials and energy were seen as, I don’t want to say the bad guys, but certainly they were under much more regulatory scrutiny and tech was seen as virtuous.”

“Now there are real questions where those positions may be turning, where energy and financials are be seen as the solution for this administration in terms of getting growth going and there are real questions in terms of market power for companies like Facebook and Google on the ad side, Amazon obviously on the products side.

As Strategas’ chief investment strategist, Trennert is known as one of Wall Street’s top strategists on the subject of markets. Prior to founding Strategas, Trennert was the chief investment strategist and a senior managing director at ISI Group. He is the author of three books on investing and the culture of Wall Street, including his most recent, “My Side of the Street.”

He also discusses:

• Candidates for Federal Reserve Chair
• Active versus passive management
• Near-term perils in September

The interview is exclusively for CNBC PRO subscribers.

Source: Tech CNBC
PRO Talks: Top Wall Street strategist Jason Trennert on a new risk emerging for tech stocks