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 as a consequence 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 stated he turned bearish for the primary time shortly after President Donald Trump’s aggressive commerce coverage made him fear about inflationary pressures and decrease shopper spending. In the meantime, his powerful stance on immigration might imply a constrained provide of labor, he stated.
“Tariffs can’t be constructive, okay? I imply, it is a tax,” Cohen stated Friday on the FII Precedence Summit in Miami Seaside, Florida. “On prime of that, we’ve got slowing immigration, which suggests the labor pressure 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 damage the economic system extra. Musk has stated his objective is to minimize federal spending by $2 trillion.
“When that cash has been coursing by way of the economic system over a few years, and now, doubtlessly it is going to be diminished or stopped in some ways, has received to be damaging for the economic system,” Cohen stated.
Cohen believes a pullback within the inventory market might be seemingly given the unsure macroeconomic surroundings. He sees the U.S. economic system’s progress slowing all the way down to 1.5% from 2.5% within the second half of the yr.
“I feel we’re seeing the regime shift a bit bit. It could solely final a yr or so, however it’s undoubtedly a interval the place I feel one of the best features have been had and would not shock me to see a big correction,” Cohen stated. “I do not assume it may be a catastrophe.”