Private equity stocks to buy on the dip, and finding buying opportunities in small caps
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors on Thursday are looking at alternative asset manager names as potential rebound plays, along with small-cap stocks. Another investor is looking at how to play the quantum computing space. Worldwide Exchange picks: Apollo Global and Blackstone Storm Uru of LionTrust Asset Management sees upside in alternative asset managers Apollo Global and Blackstone that are both more than 30% off their 52-week high. "The long term structural case for these companies is really exceptional," Uru said. "We need long term structural build out both in compute and the data center." "We know over the next 10 years a significant amount of capital is needed to build out these assets. Apollo and Blackstone are going to be the companies that enable this build out. There has been a pull back over the last 3 months from a stock price perspective that gives us the ability to make investments in these particular companies," Uru said. Worldwide Exchange pick: small caps Greg Tuorto of Goldman Sachs sees continued upside for the Russell 2000 , which has been higher for eight of the past nine weeks but is still underperforming the S & P 500 in 2025. "It's been a sum of all fears for everything, the economy, tariffs, everything that you worry about have really found a home in small caps," said Tuorto. However he added, that trend is changing. "We are starting to see money flow back in… and technicians are calling for a more sustained move from here." Tuorto's top picks in the space include: Ollie's Bargain Outlet , Shake Shack and Piper Sandler . Robert Smith on Quantum Computing Vista Equity Partners CEO Robert Smith said quantum computing will become increasingly important as software become more agentic. "When you create agents, one user now goes to multiple agents … you have now increased the surface area of attack as a user we have to protect you from cyber attack," Smith said. "With agents you have a multiplicity of surface area for attack vectors. Quantum encryption will become … a very unique way in which we can protect our agents." "In some cases in an environment in a virtual machine, in other cases it's going to protect specific and individual agents in the environment in which they operate. Those are the two phases we are already working on today with very specific partners. How to use quantum computing as a protecting agent for our agents," he added.
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Veteran fund manager resets stock market forecast amid Musk, Trump fallout
Veteran fund manager resets stock market forecast amid Musk, Trump fallout originally appeared on TheStreet. Put two mercurial personalities in the room, add competing goals and a hefty dose of media pressure, and what do you get? Let's just say that the high-profile friend-to-foe saga isn't overly surprising. Elon Musk and Donald Trump are polarizing figures with a penchant for dropping verbal bombshells, and that was particularly evident this week as the two sparred over the Big Beautiful bill, electric vehicle credits, and debt. The rift may shock some, however, given how closely Musk and Trump worked together over the past year. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Musk spent hundreds of millions helping elect Donald Trump as president, and Trump rewarded Musk with a high-profile role in his administration as the head of the Department of Government Efficiency, or DOGE. Trump even went so far as to host a Tesla showroom on the White House lawn to support Musk after Musk's political activism caused a drop in Tesla's sales. One person who wasn't the least bit surprised by the high-profile dust-up was veteran hedge fund manager Doug Kass. Back in December, Kass picked the break-up as one of his top 15 surprises for 2025. It was far from the only correct forecast for Kass. He also predicted a stock market reckoning could cause the S&P 500 to fall 15%, and in April, he accurately forecast that stocks would find their footing after the brutal sell-off. Kass recently revisited his take on Musk and Trump, and how stocks may react to their fallout. His S&P 500 outlook may disappoint many, while his take on Trump and Musk might surprise most. After back-to-back 20% gains in the S&P 500 in 2023 and 2024, including an impressive 24% return last year, investors may have complacently expected more good times in 2025. Then reality set in. The stock market has whipsawed amid a series of shocks, many delivered by President Trump and Elon Musk, via his high-profile and much-debated cost-cutting at came into 2025 arguably priced to perfection. Optimism for a friendly Federal Reserve shift in monetary policy to dovish interest rate cuts and a flood of artificial intelligence spending fueled big returns last year, pushing the S&P 500's price-to-earnings ratio north of 22. Historically, returns following high P/E ratios have been largely lackluster. That point wasn't lost on Kass, who correctly said in December that the S&P 500 could drop 15% in 2025. "Surprise #9: In 2025, the S&P Index falls by about 15%. The technology-laden Nasdaq drops by over 20%," wrote Kass. Kass beat the bearish drum continuously through February, when the S&P 500 reversed after hitting all-time highs. From mid-February through early April, bombshells in the form of shockingly high tariff announcements from President Trump and job losses stemming from Musk's DOGE efforts caused the benchmark index to plummet. At its worst, the S&P 500 fell 19%, while the tech-heavy Nasdaq fell about 24%. The sharp drop was painful, and many hit the sell button, worried that an endless stream of uncertainty would cause even greater losses. Kass, however, correctly reversed course, making bargain-basement buys on the indexes and tech leaders, including Amazon, near the lows. Since then, Trump's pause on tariffs and potential for trade deals that ease the tariffs' bite have helped fuel a dramatic recovery, lifting the S&P 500 by 20%. More Economic Analysis: Hedge-fund manager sees U.S. becoming Greece A critical industry is slamming the economy Reports may show whether the economy is toughing out the tariffs The result has been a nausea-inspiring roller coaster ride for buy-and-hold investors. That's been particularly true for Tesla () shareholders. The EV company rallied after Trump's election amid hope that Musk's White House connections would pave the way to sales growth. Instead, Musk's DOGE efforts, and arguably controversial political comments, caused a mass exodus of left-leaning Tesla buyers. Sales cratered in key markets, including Europe and California, the largest U.S. auto market. In Europe, Tesla sales dropped 49% year-over-year in April to 7,261 vehicles, according to the European Automobile Manufacturers' Association. In California, Tesla registrations fell 21.5% year-over-year in the first quarter, while non-Tesla electric vehicle (EV) registrations grew 14%. Tesla's stock price got hammered as a result, falling 54% from mid-December highs to early April lows. It's since recovered alongside the broad market, jumping 35%, largely on news Elon Musk would step away from DOGE. Doug Kass has seen a thing or two. His career stretches back into the 1970s at money manager Putnam, including a stint as research director for billionaire Leon Cooperman's Omega Advisors. His deep experience navigating markets professionally means he had a front-row seat to his share of political, economic, and stock market surprises. He witnessed Richard Nixon's Watergate implosion, the inflation-riddled 70s, the Savings & Loan crisis, the Internet boom and bust, hanging chads, the housing-bubble-driven Great Financial Recession, Trump presidency version 1.0, Covid, and the recent inflation shock and December, he tests that experience with his "surprises" list for the coming year. This year, in addition to predicting the S&P 500 sell-off, he forecast the unfriendly end of the Trump-Musk relationship. "Surprise #2: The 'other' romance, between Trump/Musk, doesn't make it past spring 2025," wrote Kass. "National protests and demonstrations emerge and demands from a wide array of members of both the Republican and Democratic parties (including conservatives and liberals) call for 'ousting' Elon Musk, an unelected official, from playing such a dominant role in the U.S. government." Kass's Musk prediction is a longer read, but the gist is simple: Musk and Trump will suffer a fallout, which may have consequences for investors. He revisited his outlook, offering a new take on the Trump-Musk situation. "Right in front of us, it is obvious that political positions of influence can easily be bought-sold by both parties (and that certainly includes the presidency)," wrote Kass. "I am not even sure where the performance ends and reality begins. In the end (probably sooner than later) — just like the president's opening salvos of ridiculously high tariff proposals — the two actors will likely have a detente (and kiss and make up) because the downside is certain for both of them, as no one will win. When that make-up happens, no one knows. It could happen today, next week or next month, but the parties' 'interests' are now so enmeshed that Musk and Trump recognize where their bread is buttered." A potential "easing" of tensions would be welcome, given that a long-term tit-for-tat would fuel market volatility. Still, Kass's view of what happens to the stock market next isn't encouraging. "Never in my investing career has there been so many possible social, political, geopolitical, economic, interest rates and fiscal policy outcomes (many of which are adverse). That is why I don't understand the uber confidence expressed by the Perma Bull cabal (led by Fundstrat's Tom Lee) and manifested in a near-vertical move higher for equities over the last two months," continued Kass. "With a forward PE of 22x, equities remain overvalued and, after covering my Index shorts yesterday, I plan to reshort any rally." If Kass is correct that instability will force stocks lower, how low could it go, and when might things improve? "I see seven lean months ahead for our markets. We estimate downside risk to be roughly 3x the upside reward," concludes fund manager resets stock market forecast amid Musk, Trump fallout first appeared on TheStreet on Jun 7, 2025 This story was originally reported by TheStreet on Jun 7, 2025, where it first appeared. Sign in to access your portfolio
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Elon and Trump's Breakup Results In Hilarious Consequences For Dogecoin
Elon Musk and Donald Trump's nasty feud has had some unintended consequences for the meme coin that inspired the Department of Government Efficiency. As CNBC reports, Dogecoin fell 10 percent on Thursday, the day that the Musk and Trump spat spilled over onto social media, and was down 22 percent week-over-week at its lowest point last night, when it was worth less than 17 cents per token (don't gasp too hard, but it's now soared back up to 18 cents.) Given that it's a meme coin, Doge has never been worth all that much to begin with. At its absolute peak in 2021, the coin traded just under 75 cents thanks to Musk's endorsement — and despite regular peaks and valleys, it's never again surpassed that all-time high. Despite its near-worthlessness, Dogecoin has been a useful metric for tracking the way Musk affects market. As CNBC notes, the meme coin spiked 15 percent in a day when Tesla began accepting it for merchandise in 2022, and jumped 35 percent later that same year when Musk bought Twitter. Just as Doge giveth, Doge seems to taketh away. The unelected billionaire has entirely squandered the gains he garnered for the meme coin when riding on Trump's coattails, first with the announcement of the agency's creation and again when its official website was launched just after the president's inauguration. As Cointelegraph reports, the coin could be poised to slip even further. Dogecoin's three-week Trump slump suggests, per the site's analysis, that it could fall to as little as six cents per coin if its bearish streak continues. Should it continue to fall, a massive selloff event may occur as itchy investors seek to rid themselves of the tarnished token. Over on the everything app, Doge bros are, as usual, acting absolutely bonkers about the coin's chances of survival. "Looks like yesterday was just another bear trap for Dogecoin," one such investor tweeted alongside a chart showing projected "euphoric" highs that almost certainly will not be attained. "Let's go!" In another unrealistic prognostication that borders on tragic, one account shared a graphic explaining that if investors "hold together, nobody will fall." "I'll keep reposting till we hit the Dollar," the delulu poster exclaimed. In Washington, the fiery feud between Musk and Trump has shaken the status quo — but for crypto types, it's just another weekend. More on meme coins: You'll Never Guess What Happened to Trump's Meme Coin After He Announced His Tariffs
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Why Wall Street's Dr. Doom now wants to be Dr. Boom
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The stock market is also likely to climb higher, he told Business Insider in an interview, predicting the S&P 500 would see high single-digit percentage growth in 2025, on par with its historical return. It's a sharp turnaround from the gloomy forecasts he' is known for. Roubini told BI the nickname started to stick in 2008, when the New York Times referred to him as "Dr. Doom" after he correctly called the Great Financial Crisis, he told BI. "Even before, I always said I'm not Dr. Doom and I'm Dr. Realist, first of all," Roubini said. He said that he's made numerous forecasts that were more bullish than the consensus throughout the years when the evidence lines up. "So I don't know why people think that I'm always Dr. Doom. It's not the case." His outlook, though, has brightened considerably since 2022. Back then, he appeared on TV and penned op-eds warning of a coming stagflationary debt crisis. At the time, he described the turmoil he saw looming as an all-in-one financial crisis involving spiraling debt levels, soaring inflation, and a severe recession. Roubini told BI there are a few things that have gotten him to change his tune. Roubini says he began to hear the murmurs of the AI revolution well before ChatGPT went viral at the end of 2022. In his 2022 book, "Megathreats," he acknowledged the potential for artificial intelligence to significantly boost economic growth and serve as a major tailwind for markets. That's become a reality way faster than Roubini expected, and a major reason he's become more bullish, he told BI. He believes the economy could start to reap the growth and productivity benefits of AI in the next several years, particularly as humanoid robots enter the mainstream. A breakthrough in fusion energy would be another bullish force for the economy, Roubini said. Fusion energy hasn't been achieved yet, but tech firms are pouring vast sums of money into making it happen. Chevron and Google contributed to a more than $150 million funding round this week for TAE Technologies, a fusion energy company that plans to have a working prototype power plant by the early 2030s. Type One Energy, another fusion energy firm, also plans to roll out a power plant by the middle of the next decade. "We're not in an AI winter anymore. We had the fusion winter for 40 years. We're not anymore," Roubini said, pointing to the stagnation in tech and fusion energy development is the past. "Now it's happening." President Donald Trump's tariffs may not be as harmful to the US economy as some investors think, Roubini says. He thinks it's more likely that markets will throw a tantrum and force Trump to walk back his most aggressive policies. That's already happened a few times this year. Roubini pointed to sharp sell-offs in the bond market that preceded Trump's 90-day pause of his "Liberation Day" tariffs, and the softening of his tone regarding firing Jerome Powell. "That means the bond vigilantes are the most powerful people in the world," Roubini said. "The instincts might be very bad, but then, markets are unforgiving," he added of policymakers. Roubini speculates that tariffs on China, for instance, could wind up somewhere around 39%, well-below the 145% tariff rate Trump proposed earlier in the year. Meanwhile, AI, quantum computing, and other tech advancements in the US can more than offset the impact of the trade war, Roubini said. Tariffs are expected to drag down GDP growth by 0.06% a year through 2035, according to estimates from the Congressional Budget Office. It's a fraction of the 2 percentage point increase in growth Roubini expects to see by the end of the decade. Roubini now pegs the odds of a recession to just around 25%. Even if the US enters a downturn this year, Roubini says he expects it to be shallow and short, as the Fed can cut interest rates to boost the economy, while tech powers growth over the long-run. That's not to say Dr. Doom has shed all of his bearish views. Roubini says many of the things he feared several years ago — stagflation, spiraling government debt levels, and rising geopolitical conflict — still loom. He rattled off a list of potential risks the US could conceivably face in the future: migration controls fueling stagflation in the economy, the US dollar collapsing in value, and China and the US not reaching a trade agreement and seeing an escalating cold war, to name a few scenarios. "So there's plenty of stuff in the world that can go wrong," he said. Read the original article on Business Insider
