Bear Market 'Is Probably Coming' In 2025, Veteran Investor Warns Of AI Bubble And Fed's Insufficient Rate Cuts Amid Sluggish Economy
Portfolio Pulse from Benzinga Neuro
Veteran investor David Roche predicts a bear market in 2025 due to a sluggish U.S. economy, an AI bubble, and insufficient rate cuts by the Federal Reserve. Despite recent market sell-offs, Roche expects the Fed to proceed with interest rate cuts, impacting profit margins throughout 2025. The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) showed gains last week, erasing earlier losses.
August 12, 2024 | 7:28 am
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NEUTRAL IMPACT
The Invesco QQQ Trust (QQQ) gained 0.6% on Friday, ending the week up 0.4% and breaking a four-week losing streak. However, the anticipated bear market in 2025 due to economic factors and an AI bubble could pose risks for QQQ.
Despite recent gains, QQQ could face long-term risks due to the predicted bear market in 2025 driven by economic slowdown and an AI bubble. Investors should monitor these developments.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) rose 0.4% on Friday, erasing earlier losses and securing its second consecutive day of gains. However, a predicted bear market in 2025 due to economic factors and an AI bubble could negatively impact SPY in the long term.
While SPY showed short-term gains, the prediction of a bear market in 2025 due to economic slowdown and an AI bubble could lead to long-term negative impacts. Investors should be cautious.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80