Ken Fisher, billionaire investor and founder of Fisher Investments, has warned of potential bear market risks for the S&P 500 amid global economic challenges, which he says are being worsened by US trade policies. According to Fisher, the imposition of trade barriers is negatively affecting the domestic economy and putting corporate profits at risk.
Fisher argues that, historically, tariffs tend to harm the country that imposes them more than the ones targeted. As a result, he believes that President Trump's unpredictable trade policies, along with what he describes as poorly designed measures by the US administration, could trigger a decline in American equity markets and possibly lead to an economic recession.
The situation is further complicated by persistent inflation in the United States, currently at 2.4%, above the Federal Reserve’s 2% target. At the same time, unemployment has risen to 4.2%, and consumer spending on non-essential goods has slowed. Escalating trade tensions could further fuel inflation and reduce profits for US corporations, according to experts at TheStreet.