Tags: marc lasry | donald trump | stock markets | sugar high

Billionaire Hedge Fund Manager Marc Lasry: Markets Are on a 'Sugar High'

(AP/Mark Lennihan)

By    |   Friday, 09 Dec 2016 12:22 PM


Billionaire hedge fund manager Marc Lasry warns savvy investors to beware of stock markets seemingly hitting new record highs on a daily basis.

To be sure, major U.S. stock indexes powered to another day of fresh record highs on Friday, with the S&P 500 ending the week up 3 percent, as investors bid up shares in sectors that have lagged in the month-long rally since Trump's presidential election, Reuters reported.

"The people [Trump] is putting in place … it will be a big experiment. All those business folks will be able to reduce regulation, increase GDP growth," he told CNBC.

 "If it occurs, great. I don't know if that happens. … I hope it does. The early signs are positive, so let's wait and see," said the CEO of Avenue Capital Group.

But as far as the stock market's record run continuing far into Trump's administration, it's still too early to tell, Lasry warned.

“It’s a little bit like you’re on a sugar high,” he said comparing it to children hyped up on candy. "It’s all positive. There’s a lot of sugar. Everyone is really excited but the question is how long does that continue?" he asked.

"If you have tax cuts, a much larger deficit in a rising rate environment, that is not beneficial unless you have 3 or 4 percent GDP growth. So what you're going to have is inflation. Question is, what will happen with GDP growth? If it is 3 to 4 percent, that will be very positive," said Lasry.

Other respected economic voices have also cautioned about the stock market.

A “minor correction” looms for the record-setting stock market, but Donald Trump will help the “ordinary investor” if the new president stops "flailing" and starts delivering on his campaign vows to make America great again, Peter Morici, a syndicated columnist and economist at the University of Maryland, tells Newsmax TV.

“I can't imagine it's going to keep going up like this and then not have a little minor correction at least,” Morici said of the lofty market's bull run since Trump's election victory. "Or even a large one. Not permanent," he said.

“There's a lot of optimism about the election of Donald Trump because after all, Barack Obama has been the most anti-business president we have had. I mean he has a visceral dislike for guys in Cadillacs, or worse, guys in Lexuses,” Morici told Bill Tucker on "The Steve Malzberg Show."

“Getting rid of him (Obama) is good for stocks, but now Donald's got to deliver and we do see him flailing about a bit,” said Morici, who is also a Newsmax Finance Insider. 

(Newsmax wire services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

1Like our page
Billionaire hedge fund manager Marc Lasry warns savvy investors to beware of stock markets seemingly hitting new record highs on a daily basis.
marc lasry, donald trump, stock markets, sugar high
Friday, 09 Dec 2016 12:22 PM
Newsmax Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved