Billionaire investor Philippe Laffont: I don't see exactly the reason to cut rates
Philippe Laffont, Coatue founder and portfolio manager, joins 'Squawk Box' to discuss the latest market trends, state of the 'Magnificent Seven', future of tech investing, his thoughts on bitcoin, state of the economy, impact of AI technology, who'll come on top in the AI arms race, the Fed's interest rate policy, future of TikTok, the NYC mayoral race, and more.
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Business Insider
36 minutes ago
- Business Insider
Why a billionaire investor thinks bitcoin's total market value could more than double to $5 trillion
The total value of all bitcoins could more than double, according to one billionaire investor who says he wishes he had bought the crypto sooner. Philippe Laffont, the founder of hedge fund Coatue Management, said he added bitcoin to his firm's Fantastic 40 list, a collection of investments it sees as major winners through 2030. That's partly because Laffont believes the total market cap of the world's biggest crypto could rise to as much as $5 trillion one day. That implies bitcoin's total value rising 134% from a market cap of around $2.1 trillion on Wednesday. "I have not gotten involved in bitcoin. I wake up every day at 3 in the morning and I'm like, 'why am I such an idiot? What have I been waiting for, not being involved in it?' And it just goes up and up," Laffont told CNBC on Wednesday. Bitcoin's price has been volatile this year amid tariff-related volatility and a mix of geopolitical and economic concerns. The crypto has rallied to $107,000 in recent days, bringing its price up 14% year-to-date. It hit an all-time high above $111,000 in May. Laffont, who said he initially brushed off bitcoin as an attractive investment, added that there were a few reasons why he's warming up to the cryptocurrency and sees the value soaring. For one, bitcoin's current valuation relative to the rest of the world seems too low, according to Laffont. The net worth of all world assets hovers around $500 trillion, Laffont said. That means bitcoin represents around 0.5% of the world's total assets, but Laffont thinks it's reasonable for bitcoin to represent 1%-2% of the total. Global stocks, by comparison, make up around $120 trillion of the world's assets, while gold makes up around $20 trillion, he added. Second, bitcoin's volatility appears to be declining relative to stocks. Bitcoin dropped 11% in the days after President Donald Trump announced his sweeping array of tariffs. That's a slightly less severe decline when compared to the Nasdaq 100, which dropped 12% from April 2 to its low on April 8. "I always thought, bitcoin's amazing, but it's double or triple the volatility of the Nasdaq," Laffont said. "It seems its volatility as an asset class is coming down." Third, bitcoin could benefit from concerns around de-dollarization and the end of US exceptionalism. Global investors have shown some signs that they're less willing to park their wealth in US assets after this year's tariff-fueled sell-off. More than half of global investors surveyed by Bank of America in June said they believed international equities would be the best-performing asset over the next five years, compared to just 23% of investors who said they believed US equities would be the top performer. The US Dollar Index, which measures the dollar against a basket of foreign currencies, has also declined 10% year-to-date. Laffont said he was now considering purchasing bitcoin. "Do I own it now? Do I own it tomorrow or in a few days? But every day, I do think, 'Why do I not own it?'" Laffont said. "Sometimes you have to change your mind and you have to say, well, I made a mistake," he added.
an hour ago
The stock market is surging. Will it last?
The stock market has been on a tear in recent weeks, shrugging off newly imposed tariffs, caution at the Federal Reserve and war in the Middle East. The S&P 500 has soared 20% since an April low suffered after President Donald Trump's 'Liberation Day' tariff announcement. Over that period, the tech-heavy Nasdaq has climbed 28%, while the Dow Jones Industrial Average has jumped 12%. Over the past month -- even as a U.S.-China trade tensions resurfaced and the Iran war broke out -- the S&P 500 climbed more than 5%. Concern among investors about topsy-turvy economic policy has given way to cautious optimism about a dialed-back tariff posture and continued economic growth, some analysts told ABC News. While day-to-day price swings will likely persist, they added, the current outlook points to further gains over the remainder of the year. 'The market is making a pretty concerted effort to try to look past some of these near term disruptions,' Yung-Yu Ma, chief investment strategist at PNC Financial Services, told ABC News. In recent weeks, Trump has rolled back some of his steepest levies, easing costs imposed upon companies and alleviating concern about a sharp surge of inflation. A trade agreement last month between the U.S. and China slashed tit-for-tat tariffs between the world's two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a downturn. The downshift of tariffs has coincided with data demonstrating a healthy economy. Fresh inflation data earlier this month showed a slight acceleration of price increases, but inflation remains near its lowest level since 2021. Hiring slowed but remained sturdy in May as the uncertainty surrounding on-again, off-again tariffs appeared to curtail hiring less than some economists feared, a government report this month showed. The outbreak of tit-for-tat strikes between Iran and Israel earlier this month sent stocks falling and hiked oil prices. Those challenges proved short-lived, however, as stocks resumed their gains and oil prices eased amid a ceasefire. 'The stock market doesn't care about geopolitical events,' Ivan Feinseth, a market analyst at Tigress Financial, told ABC News. 'The market might react for a day or two, but it was nothing sustained.' Investors have also placed hope in an expected lowering of interest rates at the Fed. So far this year, the central bank has taken up a wait-and-see approach, holding interest rates steady as policymakers await the potential effects of tariffs. A recent Fed forecast suggested a likely pivot, however, predicting two quarter-point cuts this year as well as two quarter-point cuts next year. "The stock market's recent strength reflects growing optimism around a soft landing, improving corporate earnings and the potential for lower interest rates ahead," Brian Buetel, managing director at UBS Wealth Management, said in a statement last week. Still, the market faces meaningful risks, analysts said. Trade tensions could worsen and tariffs could escalate, some analysts said, while noting the difficulty of anticipating exactly where the levies will land. A resumption of hostilities in the Middle East could drive up oil prices and hamper global economic growth, they added. A burst of tariff-induced inflation could nudge the Fed toward a cautious approach and delay potential interest rate cuts. "Despite the market getting close to its highs, getting too enthusiastic is probably not what's called for at this point," Ma said. "It's still a back-and-forth market." Nevertheless, analysts expect an upswing in the stock market over the remainder of 2025. Feinseth forecasted an uptick in the S&P from its current level of 6,090 to 6,500, which would mark an increase of 6%. Ma predicted similar gains, saying the market would rise at least 5%. "We think the overall end destination is one that will be palatable for markets," Ma said. "But it will be a bumpy path from here to there."
Yahoo
an hour ago
- Yahoo
Jerome Powell says Fed is ‘on alert' for possible Iranian cyberattacks because ‘we're a target as well'
Federal Reserve Chair Jerome Powell told Congress the central bank had been 'in touch' with government agencies and financial institutions about cybersecurity to ward off a possible Iranian attack. The Federal Reserve is on guard for possible retaliatory Iranian cyberattacks after the U.S. bombed three nuclear facilities in the country, Chair Jerome Powell said Tuesday. During a congressional hearing, Powell was asked about the cybersecurity protections of financial institutions, including the central bank. 'We're on the alert because we're a target as well,' Powell said. 'So you're right to raise it. It's a big issue.' Powell said the Fed had been 'in touch' with other regulators and government agencies that protect against foreign cyberattacks. The central bank also warned banks to 'be on alert for things like that to happen,' Powell said, referring to cybersecurity breaches. The Fed has the necessary resources to stave off a possible cyberattack, according to Powell. 'The government generally spends a lot on these things,' he said. 'That said, you can never, ever be comfortable in this area because the bad guys are always getting better.' Concerns about possible cyber strikes from Iran or its proxy groups grew after the U.S. attacks on the country's nuclear enrichment sites over the weekend. Businesses and the financial sector in particular have already been warned by experts and government agencies, including the Department of Homeland Security, that Iran might respond to the U.S.'s air strikes by trying to hack critical digital infrastructure. As yet there have been no known cyberattacks in retaliation for the weekend's raid. However, on Monday, Iran did fire a barrage of missiles at a U.S. military base in Qatar. U.S. defense systems successfully intercepted those missiles. Despite rising tensions, the U.S., Iran, and Israel appear to be reaching a détente. Early Tuesday morning President Donald Trump announced a ceasefire among all three countries that would end any further hostilities. The president immediately accused Israel and Iran of violating the ceasefire shortly after it was struck. 'I'm not happy with Israel,' Trump told reporters. 'Not happy with Iran, either.' Iranian cyberattacks have been a lingering threat for U.S. companies and government agencies. Last April the U.S. Treasury Department sanctioned two Iranian companies and four individuals for allegedly working with the Iranian Islamic Revolutionary Guard Corps' cyber division on a series of phishing and malware attacks against American companies and government entities. The Justice Department indicted the four people involved. In one instance, the group succeeded in compromising upwards of 200,000 employee email accounts, according to the Justice Department. Iranian attacks stretch back through several presidential administrations. As far back as 2016, the FBI charged a group of seven Iranians connected to the Iranian government for trying to hack into financial institutions and a dam in New York. The group used botnets and malicious computer code against roughly 50 financial institutions between 2011 and 2013. This story was originally featured on
