Wall Street investor sees bear market in 2025 with economic slowdown and AI bubble

Investor and strategist David Roche expects the economy to enter a bear market in 2025, he said on Monday. The market will be driven down by rate cuts that will disappoint, a slowing economy and an AI bubble, he said during a CNBC interview. Roche predicted the Fed won’t reduce rates to the market’s desired 3.50%. The Fed’s median forecast for 2025 is 4.1%, according to the CME FedWatch Tool. Nearly all market participants expected rates below 4.1% by September 2025, the data said. The veteran investor said “the second...