Wall Street’s most famous trader gives stock market predictions for 2025
The most photographed trader on Wall Street has made his stock market predictions for 2025.
Peter Tuchman, known as “Einstein of Wall Street” for his signature hairstyle, wore flashy “2025” glasses as he laid out his outlook for the year.
The 68-year-old stock trader gave a positive forecast, saying he didn’t think the new Trump administration would “dismantle” a year of remarkable gains for Wall Street.
The S&P 500 rose 23 percent in 2024, after rising 24 percent the year before.
This marked the first time in nearly three decades that the index, which tracks the 500 largest companies in the U.S., rose more than 20 percent in two consecutive years.
Despite spiraling out of control in the last few weeks of 2024, these back-to-back rallies are the best performance for the index since the dot-com boom of 1997 and 1998.
Speak with Fox Business of the New York Stock Exchange, Tuchman dismissed the idea that this rally would lead to a crash comparable to the bursting of the dot-com bubble in the early 1990s.
“We have to throw away all these historical predictions because I think in a post-Covid world, all the terminology that we have used and all these historical predictions no longer have any meaning,” he said.
“In a market where we can have a bear market at 11 o’clock in the morning and a bull market at 3 o’clock in the afternoon with these thousand-point swings,” he continued, “I don’t think you can use that kind of historical statement. framework for making such decisions.’
He said we need to look at 2025 “entirely in isolation”, after an “amazing” 2023 and a 2024 that has been “extraordinary in every way”.
It’s important to think about how “significant” these rallies are in what has been “not an easy year,” he added, with high interest rates and inflation, conflict around the world and divisions surrounding the US presidential election.
The stock market was buoyed by Trump’s re-election in November and reached record highs.
Investors celebrated what they expect to be a business-friendly government, with lower corporate taxes and looser regulations.
Peter Tuchman is known as ‘Einstein of Wall Street’ because of his signature haircut
The stock market soared on news that Trump had won a second term
But some analysts are concerned about the effect Trump’s proposed tariffs on China, Mexico and Canada could have on the stock market.
Tuchman said: “Everyone is afraid that Mr. Trump is going to throw a wrench into this incredible market that he is leaving behind. I don’t think he’ll do that.’
He said the newly elected president may be “going up against China” in terms of tariffs, but that’s “the way he’s playing.”
“He plays hardball,” he said. “But I don’t think he’s going to dismantle what’s given to him.
“He’s being presented with an extraordinary market that we’ve never seen before in recent years.”
Tuchman pointed to the market’s strength going forward, noting that there were “seven” pullbacks or selloffs in 2024.
“And they’ve all been rejected by a big bullish rally,” he said.
“Each one was nothing more than an extraordinary buying opportunity for the market.”
Others are less positive about the direction they see the market moving in as the year progresses, pointing to what they see as warning signs of the turbulence to come.
Felix Zulauf, head of Swiss firm Zulauf Consulting, told Barron’s that a correction in the S&P 500 could be as much as 15 percent.
“I think the long-term liquidity indicators suggest we’ll peak in ’25, then drop sharply in ’26, which would mean we’ll probably reach the final top of the market sometime in ’25.” , he said.