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.
The U.S. economy may be closer to a downturn than many realize, according to Jay Bryson, chief economist at Wells Fargo.
Morgan Stanley has issued a cautionary outlook on the U.S. dollar, predicting a major decline over the coming year as Federal Reserve rate cuts take hold.
Legendary investor Ray Dalio has issued a stark warning about the trajectory of U.S. government finances, suggesting the country is drifting toward a series of severe economic shocks unless its debt spiral is urgently addressed.
Steve Eisman, the famed investor known for forecasting the 2008 housing collapse, is sounding the alarm—not on overvalued tech stocks or interest rates, but on the escalating risk of global trade disputes.