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3471Peter Navarro, senior counselor to President Donald Trump, made a bold prediction on Fox News this week: “Stocks are going to go crazy. They are going to go so bullish.”
According to Navarro, the market is finding its bottom now and is ready for a massive upswing, especially for companies that start producing in the United States.
Dow 50,000 and No Recession?
During his appearance on The Ingraham Angle, Navarro told small investors not to panic and insisted the U.S. economy is in good shape.
He claimed the Dow Jones could hit 50,000 and guaranteed that there would be no recession.
He pointed to falling oil prices and an upcoming tax cut as key drivers.
“That’s going to be a great… There is not going to be any inflation,” Navarro said. “We’ve already had a significant drop, a huge drop in oil prices… that’s like a point off the CPI.”
He argued that while only a handful of AI stocks have fueled the S&P 500’s recent growth, that’s about to change.
“Most of the stocks in the S&P 500 have gone nowhere. Now they are going to go crazy,” he said.
However, critics say Navarro’s optimism clashes with current market realities. The broader market has shown signs of stress, with recent declines raising concerns about investor confidence.
Several economists have cautioned that geopolitical uncertainty, persistent inflationary pressures, and slowing global demand could weigh on U.S. equities.
JPMorgan Chase’s Jamie Dimon and Federal Reserve Chair Jerome Powell have voiced concerns about potential inflation and a slowdown in economic growth due to new tariffs on Chinese and Japanese imports.
“We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products,” Dimon wrote.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
READ ALSO: ‘The Global Economy Taken Down Because Of Bad Math,’ Says Bill Ackman—’Trump Is Not An Economist’
Tariffs and Trade Talks
Navarro also spoke about foreign trade, saying other countries are starting to negotiate with the U.S. on tariffs. “We’ve got countries coming to us… saying, ‘We’ll put our tariffs down finally if you’ll put yours down.'”
But he doesn’t see this as a win. He pointed out that countries like Vietnam and members of the European Union still run large trade surpluses with the U.S. even when tariffs are low or zero.
Using Vietnam as an example, Navarro said, “They sell us $15 for every $1 we sell them,” and claimed much of that is actually Chinese goods being rerouted. He called it “transship” and criticized how the U.S. has allowed such practices to go on.
The Manufacturing Argument
Navarro dismissed critics who say manufacturing jobs won’t return to the U.S. “This is going to be a golden age,” he said.
He argued that jobs in sectors like electronics, automobiles, and even textiles can come back, especially with the help of automation.
He gave the example of German automaker BMW’s plant in South Carolina, where he says only the final assembly happens in the U.S. while the best jobs and profits stay in Germany.
Navarro’s Past Under Fire
While Navarro continues to defend the Trump administration’s aggressive trade policies, he recently came under fire for using a fictional persona, “Ron Vara,” in his books.
Ron Vara, whose name is an anagram of Navarro, was cited in at least six of his books as an expert voice warning against China.
Navarro later admitted it was an “inside joke,” calling it a “whimsical device and pen name” used for “entertainment value.”
China’s foreign ministry wasn’t amused. Spokesperson Hua Chunying said such actions “will threaten and undermine normal international relations and order.”
Navarro responded with sarcasm, saying China had revoked Vara’s visa and banned humor in social media.
Despite the controversy, Navarro remains a strong voice in Trump’s economic team and a key figure in the ongoing U.S.-China trade talks.
But with markets showing ongoing volatility and economic indicators flashing mixed signals, many are questioning whether his bullish forecasts will materialize.
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