Steve Cohen, chairman and CEO of Point72, talking to CNBC on April 3, 2024.
CNBC
Billionaire investor Steve Cohen doubled down on his damaging view of the U.S. economic system because of a backdrop of punitive tariffs, immigration crackdown and federal spending cuts spearheaded by the so-called Division of Authorities Effectivity.
The chairman and CEO of hedge fund Point72 mentioned he turned bearish for the primary time shortly after President Donald Trump‘s aggressive commerce coverage made him fear about inflationary pressures and decrease client spending. In the meantime, his powerful stance on immigration may imply a constrained provide of labor, he mentioned.
“Tariffs can’t be optimistic, okay? I imply, it is a tax,” Cohen mentioned Friday on the FII Precedence Summit in Miami Seaside, Florida. “On high of that, we have now slowing immigration, which suggests the labor power is not going to develop as quickly as … the final 5 years and so.”
The distinguished hedge fund investor took a stab at DOGE’s cost-cutting strikes led by Elon Musk, saying they may solely harm the economic system extra. Musk has mentioned his aim is to minimize federal spending by $2 trillion.
“When that cash has been coursing via the economic system over a few years, and now, doubtlessly it is going to be decreased or stopped in some ways, has received to be damaging for the economic system,” Cohen mentioned.
Cohen believes a pullback within the inventory market might be probably given the unsure macroeconomic surroundings. He sees the U.S. economic system’s development slowing all the way down to 1.5% from 2.5% within the second half of the 12 months.
“I feel we’re seeing the regime shift somewhat bit. It might solely final a 12 months or so, but it surely’s positively a interval the place I feel the very best positive factors have been had and would not shock me to see a major correction,” Cohen mentioned. “I do not suppose it may be a catastrophe.”
