Senior investor Roche warns: Three factors may lead to a 20% plunge in US stocks

Senior investor Roche warns that due to a smaller-than-expected rate cut, a slowdown in the US economy, and an artificial intelligence bubble, it is expected that the US stock market will plummet by 20% in 2025. Roche believes that a bear market may arrive in 2025, with three main factors being a smaller-than-expected rate cut, a slowdown in the US economy, and a bubble in the artificial intelligence industry. He predicts that the Federal Reserve will not cut interest rates to the market's expected 3.50%, profits will not meet expectations, and the artificial intelligence industry has entered a bubble territory. This forecast does not take into account who will win the US presidential election in November. Roche expects the Federal Reserve to continue cutting rates by 25 basis points, however, this will also lead to a decrease in profit margins, which will gradually occur in 2025. If these factors trigger a bear market, the Federal Reserve will have room to respond