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.<\/p>\n

He noted that while the economy remains resilient, unpredictable conditions are driving more investors toward credit markets, as stock market returns become increasingly volatile.<\/p>\n

Lasry\u2019s 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.<\/p>\n