Steve Cohen, chairman and CEO of Point72, spoke with CNBC on April 3, 2024.
CNBC
Billionaire investor Steve Cohen doubled his negative view of the U.S. economy due to punitive tariffs, immigration crackdowns and federal spending cuts by government efficiency department cuts.
Hedge Fund Point72’s chairman and CEO said he turned bearish for the first time after Donald Trump’s aggressive trade policy made him worry about inflationary pressures and lower consumer spending. At the same time, his strong stance on immigration could mean that labor supply is restricted, he said.
“Tariffs can’t be positive, okay? Quickly become…the last five years, so,” Cohen said Friday at the FII Priority Summit in Miami Beach, Florida.
Famous hedge fund investors have stimulated Elon Musk-led Doge’s cost-cutting move, saying they will only hurt the economy. Musk says his goal is Reduce federal spending by $2 trillion.
“When the money has been growing in the economy for many years, now, this could be reduced or stopped in a number of ways, negatively affecting the economy,” Cohen said.
Cohen believes that a pullback in the stock market is likely to be given the uncertain macroeconomic environment. He believes that U.S. economic growth in the second half of the year fell from 2.5% to 1.5%.
“I think we’re seeing some changes in the regime. It may only last for a year or so, but it’s definitely a period and I think the best gains have been gained and I’m not surprised to see a major correction,” Cohen said. “I don’t think it’s a disaster.”
