Kevin O’Leary has shared his thoughts on the current market volatility and what he believes is needed to stabilize the economy. He outlined a three-part strategy he calls a “witches’ brew” that he thinks is essential to jumpstart market growth. The first part of O’Leary’s plan is to secure a significant trade deal.
He stressed the need to finalize and sign an agreement, not just have discussions. “We need more than just the jawboning 18-paper deals. We need to sign one, India would be good,” O’Leary said on the show “Mornings with Maria” on Fox Business.
The second part involves negotiating better terms concerning tariffs. President Donald Trump has imposed tariffs of up to 145% on Chinese imports, which has led to retaliatory tariff hikes on U.S. goods. O’Leary believes that easing tariff tensions is crucial.
“You’ve got to have a deal with China,” he said. The third ingredient is cutting out rhetoric about firing Federal Reserve Chairman Jerome Powell. O’Leary stressed that the market values an independent Federal Reserve.
O’Leary’s market stabilization strategy
“No more firing the Fed idea. That is not helpful to the markets,” he remarked.
O’Leary concluded that until these three factors are resolved, the markets will remain volatile. He mentioned that daily fluctuations could see swings upwards of 1,000 points, depending on the White House’s announcements. “We’re stuck in a range,” he said.
O’Leary is optimistic that with these steps, the market can achieve the stability needed for sustained growth. “It’s easy to get that Fed thing resolved. Just stop talking about it,” he added, emphasizing that China remains the last significant hurdle.
A significant contention point is Trump’s trade policies, particularly regarding China. O’Leary has dismissed the notion that tariffs are harming American companies. Previously, he referred to the European Union’s “zero-for-zero” tariff proposal on industrial goods as an opportunity for Trump to de-escalate trade tensions.
Meanwhile, the tech-heavy NASDAQ 100 climbed 2.28%, while the S&P 500 climbed 1.67% amid investor optimism on Wednesday. However, the optimism could be short-lived as China’s Ministry of Commerce has denied any negotiations with the U.S., contradicting claims of progress in such talks.
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