Billionaire investor Steve Cohen, founder of Point72 Asset Management and owner of the New York Mets, has raised concerns over a possible economic downturn in 2025. He attributes this risk to key Trump administration policies, which he believes could disrupt economic stability.
Economic Risks on the Horizon
Cohen warns that restricting immigration may worsen the labor shortage, making it harder for businesses to find skilled workers. Additionally, cutting federal spending could reduce liquidity in the economy, slowing overall growth. Analysts at his firm predict that U.S. economic growth will decline from 2.5% to 1.5% in the second half of 2025, according to a report by the Daily Mail.
Market Experts Raise Alarms
Cohen is not alone in his concerns. Several major investors have also issued warnings:
📉 Bank of America has highlighted the “fragility” of large-cap stocks.
📉 Jamie Dimon (JPMorgan Chase) believes the stock market is significantly overvalued.
📉 Warren Buffett points out that the total market capitalization is now twice the U.S. GDP, a potential red flag for an overheated market.
Is a Financial Crisis Coming?
Despite these warnings, Cohen does not foresee a catastrophic economic collapse. However, he urges investors to be prepared for potential market instability. As the economy faces multiple challenges, experts recommend diversification and cautious investment strategies to mitigate risks.
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