By Daily Mail (U.S.) | Created at 2025-01-01 18:51:45 | Updated at 2025-01-04 11:46:02
2 days ago
The most photographed trader on Wall Street has given his stock market predictions for 2025.
Peter Tuchman, who is known as 'Einstein of Wall Street' due to his distinctive hairstyle, wore flashing '2025' glasses as he delivered his outlook for the year.
The 68-year-old stock trader gave a positive forecast, and said he did not think the incoming Trump administration would 'dismantle' what has been a year of remarkable gains for Wall Street.
The S&P 500 surged 23 percent in 2024, after gaining 24 percent the year before.
This marked the first time in almost three decades that the index, which tracks the 500 biggest companies in the US, rose over 20 percent in two consecutive years.
Despite fizzling out in the last few weeks of 2024, these back-to-back rallies are the best performance for the index since the dot-com boom in 1997 and 1998.
Speaking to Fox Business from the New York Stock Exchange, Tuchman dismissed the idea that this rally would lead to a crash similar to the bursting of the dot-com bubble in the early noughties.
'We need to throw out all of those historic predictions because I think in a post-Covid world, all of the terminology we've used and all of these historic predictions, they don't have any bearing any longer,' he said.
'In a market where we could be in a bear market at 11 in the morning and a bull market at 3 in the afternoon with these thousand-point swings,' he continued, 'I don't think you can use that kind of historic framework to make decisions like that.'
He said that we need to look at 2025 'all on its own' after a 'great' 2023 and a 2024 which has been 'extraordinary in every respect.'
It is important to think about how 'significant' these rallies are in what has 'not been an easy year,' he added, with high interest rates and inflation, conflicts across the world and division around the presidential election in the US.
The stock market was bolstered in November by Trump's re-election, and hit record highs.
Investors celebrated what they anticipate will be a business-friendly administration, with lower corporate taxes and looser regulations.
Peter Tuchman is known as 'Einstein of Wall Street' due to his distinctive hairstyle
The stock market soared following the news that Trump had won a second term in office
But some analysts are concerned by the effect that Trump's proposed tariffs on China, Mexico and Canada could have on the stock market.
Tuchman said: 'Everyone is fearful that Mr Trump is going to throw a wrench into this incredible market that he is being left. I don't think he is going to do that.'
He said that the President-elect may 'go up against China' in terms of tariffs, but that is 'the way he plays.'
'He plays hardball,' he said. 'But I don't think he is going to dismantle what he is being given.
'He is being handed an extraordinary market that we've never seen anything like over these years.'
Tuchman pointed to strength in the market looking forward by pointing out that there were 'seven' pull-backs or sell-offs in 2024.
'And every one of them has been rebuffed by a major bullish rally,' he said.
'Each one of those was nothing more than an extraordinary buying opportunity for the market.'
Others have been less positive about the direction they see the market going in over the course of the year, and have pointed out what they see as warning signs of turbulence ahead.
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 long-term liquidity indicators suggest that we are going to top out during '25, and then decline sharply in '26, which would mean that we probably make the final market top sometime in '25,' he said.
