KKR Says FX Volatility Could Be Market’s ‘Achilles Heel’ in 2025
- Asset manager says tariff wars could lead to currency shocks
- 2025 outlook bets on the S&P 500 to hit 6,850 by year-end
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KKR & Co. is warning that a volatile currency market could be an “Achilles heel” for investors in 2025, as growing deficits and the threat of trade wars may disrupt a bull market that it says still has room to run.
The alternative asset manager said it’s monitoring the dollar and emerging-market currencies heading into the new year, “especially given higher leverage” and some countries’ desire “to adjust their currencies to improve their competitive positioning,” Henry McVey, KKR’s head of global macro and asset allocation, wrote in an outlook report with colleagues.