From Yahoo Finance: 2025-06-07 15:13:00

Veteran fund manager Doug Kass predicted the fallout between Elon Musk and President Donald Trump, updating his S&P 500 outlook. The high-profile spat caused the market to plummet, with the S&P 500 falling 19% and the Nasdaq dropping 24%. Kass correctly reversed course, making bargain buys near the lows, leading to a 20% recovery. Musk’s relationship with Trump soured after a high-profile spat, causing Tesla sales to drop significantly. Tesla’s stock fell 54% but has since recovered 35%. Kass predicted a potential “easing” of tensions between Musk and Trump, which could help market volatility. However, Kass’s view on the stock market isn’t encouraging, with a forecast of seven lean months ahead and a downside risk three times the upside reward.



Read more at Yahoo Finance: Veteran fund manager resets stock market forecast amid Musk, Trump fallout