Billionaire investor Marc Lasry has voiced concerns that economic instability under Donald Trump’s policies—particularly tariffs—could discourage investment and increase the likelihood of a recession.
Speaking at a financial conference at New York University, the Avenue Capital Group co-founder pointed out that market uncertainty often leads to hesitation among investors, ultimately slowing economic activity.
He noted that while the economy remains resilient, unpredictable conditions are driving more investors toward credit markets, as stock market returns become increasingly volatile.
Lasry’s warning comes as the S&P 500 has experienced a month-long decline, bringing its total losses for the year to around 4.5%. Meanwhile, bond markets are reflecting growing unease, with investment-grade credit spreads widening to levels not seen since September.
Analysts from firms like Goldman Sachs and Barclays have also highlighted the rising risk in credit markets.
Reflecting on his past business interactions with Trump—specifically his investment in Trump Entertainment Resorts following its 2009 bankruptcy—Lasry remarked that the former president thrives in chaos, a leadership approach that, he suggests, fuels market instability.
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