Billionaire hedge fund manager Steven Cohen, chairman and CEO of Point72 and owner of the New York Mets, has forecasted a potential retest of the stock market's April 2025 lows, anticipating a market decline of 10% to 15%. Cohen described this pullback as expected profit-taking rather than a severe downturn. His view aligns with other prominent investors, including Paul Tudor Jones and Katie Stockton, who also expect the market to revisit these lows. The stock market has experienced a sharp recovery since early April, with the S&P 500 rising approximately 22% since its April 7 low. Concurrently, the total put-to-call ratio, a measure of market sentiment, has dropped to 0.55, the lowest since December 2010, indicating a surge in bullishness and optimism among investors. Despite this optimism, concerns remain about economic conditions, with Cohen noting a 45% chance of a recession and suggesting the Federal Reserve will be slow to cut interest rates. Market analysts warn that the current complacency, reflected in low put-call ratios and rising yields, could precede a market correction.
Equity put/call ratio lowest since January https://t.co/DtKe0eXPiz
I'm seeing a lot of chatter about low put/call ratios. Many see this as a sign of too much optimism. The CBOE Equity Put/Call ratio fell to 0.41 after climbing above 1.01. Here’s what history shows when the ratio cycled from above 0.9 to below 0.42. Analysis generated via https://t.co/V4nE1sZyL5
With Cohen and PTJ looking to retest the lows, I asked @grok who else said this. Pretty big list. Several financial analysts and hedge fund managers have echoed Paul Tudor Jones' sentiment about stocks potentially retesting the April 2025 lows, particularly in light of economic