For the first time in recent memory, billionaire investor Steve Cohen, the powerhouse behind Point72 Asset Management, has taken a decisively bearish stance on U.S. markets because of Donald Trump‘s policies. The legendary trader and owner of the New York Mets, known for his sharp instincts and market prowess, is sounding the alarm over looming economic turbulence. Citing trade policy uncertainties, tightening immigration laws, and impending federal spending cuts, Cohen warns that these forces could set the stage for a major market correction—a stark shift from his typically bullish outlook.
His comments came at the Future Investment Initiative Institute’s summit in Miami Beach.
“I’m actually pretty negative for the first time in a while,” said Steve Cohen. “It may only last a year or so, but it’s definitely a period where I think the best gains have been had and wouldn’t surprise me to see a significant correction.”
“On top of that, we have slowing immigration, which means the labor force will not grow as rapidly,” he added. “Reality is you’ve got a brew of sticky inflation, slowing growth, and austerity in the government, and so I’m actually pretty negative for the first time in a while.”
Steve Cohen also took direct aim at the Department of Government Efficiency’s aggressive cost-cutting measures, led by Elon Musk, which seek to slash $2 trillion in federal spending. Expressing deep concern, he warned of the potential economic fallout: “When that money has been flowing through the economy for years and now faces drastic reductions—or even elimination—it’s bound to have a negative impact.”
On President Trump’s implementing new tariffs, Cohen said, “Tariffs cannot be positive, okay? I mean, it’s a tax.” And you can imagine tit-for-tat if the US implements a tax on somebody, they’re going to perhaps raise the stakes and raise their tax back.”
Steven A. Cohen is the Chairman and Chief Executive Officer of Point72, a 2,000+ person registered investment advisor. Mr. Cohen founded S.A.C. Capital Advisors in 1992 and converted his investment operations to the Point72 Asset Management family office in 2014.
Steve Cohen has leveraged his lengthy career in the public markets to found Point72 Ventures, a global venture capital strategy, and Point72 Hyperscale, a private equity strategy that seeks to drive value creation through applied AI.
