Billionaire investor Mark Lasley has expressed concern that President Donald Trump’s policies, particularly the economic uncertainty caused by tariffs, could halt investment and lead the United States into a recession.
Speaking at the Credit Opportunity Symposium at New York University on Friday, the co-founder of Avenue Capital Group highlighted the risks of unpredictability in the market.
“The market problem is when they don’t know what to do,” Lasley said. “The economy cannot survive that way. It can slow everything down and lead the economy into a recession.”
Lasley admitted that the economy remains strong, but noted that uncertainty about the direction of the economy could drive more investors into the credit market as stock returns seem increasingly unpredictable. Lasry’s comments came as the S&P 500 Index fell for the fourth consecutive week, cutting its losses from the start of the year to around 4.5%. Meanwhile, US investment-grade bonds have spread to the widest levels since September, showing rising credit risk.
Major financial institutions such as Goldman Sachs and Barclays have warned that credit risk will increase.
Lasley has a history of dealing with Trump, who invested in Trump Entertainment Resort after his bankruptcy in 2009.
*This is not investment advice.
