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Markets have rallied on pro-business policy optimism, expert says

Foreign earnings repatriation and paring regulatory burdens are just some of Donald Trump's proposals that appeal to both major political parties, said John Thaler, founder of JAT Capital Management.

Thaler argued that optimism for these policies are part of the reason that the Dow Jones industrial average has gained about 3 percent since the election.

"Well, holding all variables constant relative to the alternative, we're likely to see a lot of very pro-business policies at least put forth, so it's not surprising that the market would respond this way," Thaler told CNBC's "Halftime Report" on Monday, speaking from the No Labels conference in Washington.

A key to making these policies a reality is reaching across the aisle and compromising, Thaler said.

"One of the critical problems plaguing the government today is the inability of certain members to work with the other party and in fact certain folks openly stating an obstructionist position," Thaler said.