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American Focus > Blog > Economy > Veteran fund manager resets stock market forecast amid Musk, Trump fallout
Economy

Veteran fund manager resets stock market forecast amid Musk, Trump fallout

Last updated: June 7, 2025 1:00 pm
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Veteran fund manager resets stock market forecast amid Musk, Trump fallout
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Veteran fund manager Doug Kass made headlines recently with his updated stock market forecast amid the fallout between Elon Musk and Donald Trump. The high-profile spat between the two influential figures has sent shockwaves through the financial world, leading Kass to reassess his predictions for the S&P 500.

Kass, known for his accurate market forecasts, had previously warned of a potential 15% drop in the S&P 500 in 2025. His foresight has been proven time and time again, with successful predictions of market fluctuations and trends. This time, Kass revisited his outlook on Musk and Trump, highlighting the impact their rift could have on the stock market.

After two consecutive years of significant gains in the S&P 500, investors were expecting another positive year in 2025. However, the landscape changed dramatically as a result of the ongoing tensions between Musk and Trump, along with other external factors. The market volatility caused by their public disagreements has left many investors on edge, unsure of what the future holds.

Despite the recent recovery in the stock market, Kass remains cautious about the long-term outlook. He believes that the current high valuation of equities, combined with the uncertainty surrounding political and economic factors, could lead to further instability in the coming months. As a result, he plans to short any rally in the market, anticipating a prolonged period of lean months ahead.

While Kass acknowledges the potential for tensions between Musk and Trump to ease in the future, he remains skeptical about the overall direction of the market. With downside risks outweighing upside rewards, he cautions investors to tread carefully in the current environment.

See also  BOOM! President Trump Appoints Ed Martin to Be Director of DOJ's Weaponization Working Group and Pardon Attorney |

As the financial world braces for continued uncertainty, Kass’s insights offer valuable guidance for navigating the choppy waters ahead. His track record of accurate predictions and deep understanding of market dynamics make his perspective a valuable resource for investors looking to weather the storm.

The original article, “Veteran fund manager resets stock market forecast amid Musk, Trump fallout,” first appeared on TheStreet on Jun 7, 2025. For more detailed analysis and expert insights, be sure to follow TheStreet for the latest updates.

TAGGED:FalloutForecastfundmanagermarketMuskResetsStockTrumpveteran
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