Large investors on Wall Street maintain a careful approach in 2025 even though financial markets remain optimistic. The hedge-fund magnates speaking at the iConnections Global Alts Miami event displayed their apprehension about market overvaluation and rising inflation alongside anticipated consequences of Donald Trump’s trade protectionism.
During the iConnections Global Alts conference Steve Cohen from Point72 explained how tariff increases together with immigration restrictions would potentially trigger inflationary pressure while lowering consumer purchasing power. In his estimation the upcoming period from July to December will present harsher conditions according to Hedge fund manager Steve Cohen.
During the last two years the S&P 500 index experienced a 53% growth which stands as its biggest increase since the late 1990s. Investors became uneasy after technology company Nvidia faced a share decrease because of Chinese artificial intelligence competition. 
According to Bridgewater’s Karen Karniol-Tambour there exists a combination of economic strength and increasing inflation levels which demands strategic action. According to her it remains unwise to risk too much during the current uncertain policy period.
Oaktree Capital’s Howard Marks observed market irrationality by using the Nvidia stock sell-off as evidence. High-yield bonds provided him with a safer investment option than equities while offering minimal returns for the S&P 500 index.
Investors in 2025 should approach their strategies with caution because of both policy uncertainties and market economic challenges.
