Steve Cohen, chairman and CEO of Point72, chatting with CNBC on April 3, 2024.
CNBC
Billionaire investor Steve Cohen doubled ailing on his adverse view of the U.S. economic system because of a backdrop of punitive price lists, immigration crackdown and federal spending cuts spearheaded by means of the so-called Branch of Govt Potency.
The chairman and CEO of hedge treasure Point72 mentioned he grew to become bearish for the primary day in a future nearest President Donald Trump’s competitive industry coverage made him fear about inflationary pressures and decrease client spending. In the meantime, his tricky stance on immigration may just cruel a constrained provide of work, he mentioned.
“Tariffs cannot be positive, okay? I mean, it’s a tax,” Cohen mentioned Friday on the FII Precedence Top in Miami Seashore, Florida. “On top of that, we have slowing immigration, which means the labor force will not grow as rapidly as … the last five years and so.”
The important hedge treasure investor took a stab at DOGE’s cost-cutting strikes led by means of Elon Musk, pronouncing they may simplest harm the economic system extra. Musk has mentioned his function is to trim federal spending by means of $2 trillion.
“When that money has been coursing through the economy over many years, and now, potentially it will be reduced or stopped in many ways, has got to be negative for the economy,” Cohen mentioned.
Cohen believes a pullback within the book marketplace may well be most likely given the unsure macroeconomic state. He sees the U.S. economic system’s expansion slowing ailing to at least one.5% from 2.5% in the second one part of the hour.
“I think we’re seeing the regime shift a little bit. It may only last a year or so, but it’s definitely a period where I think the best gains have been had and wouldn’t surprise me to see a significant correction,” Cohen mentioned. “I don’t think it’s going to be a disaster.”
