"Just deal with hysteria"— Shark Tank investor Kevin O'Leary claims recession fears are overstated and backs long-term US growth

In a recent interview on Fox Business on April 8, 2025, Shark Tank investor and entrepreneur Kevin O'Leary addressed concerns about an impending recession and market declines, particularly in light of President Trump's tariffs. O'Leary was asked about predictions for the Dow Jones Industrial Average reaching 50,000 by the end of Trump's term.

"I think that's a long time to speculate. What the outcome's going to be. I think we got to take it quarter by quarter. Let's just deal with hysteria right now about the market declines," he said.

He downplayed recession fears, highlighting long-term investment opportunities.

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Shark Tank's Kevin O'Leary stresses long-term growth amidst market volatility and tariff concerns

Market declines and recession fears

Kevin O'Leary reiterated during the interview that although concern regarding market crashes is high, investors must not panic. In O'Leary's view, the present price-to-earnings (PE) ratio of the market is historically supportive.

"We took the market down from sort of 22 PE to now around 17 and a half... which historically, it is not a bad place to enter," he cited.

O'Leary remains upbeat about future growth, recommending that a long-term perspective of the market is necessary to navigate today's volatility. O'Leary also cited solid economic indicators as proof that recessionary fears are possibly exaggerated. Citing recent jobs data, which indicated an improving trend:

"Those job numbers on Friday were very very good," he stated.

Despite market uncertainties, the Shark Tank investors explained that the economy is still performing well, which contradicts claims of an imminent recession.

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The impact of tariffs on the economy

The conversation also shifted to how President Trump's tariffs would affect the economy, with O'Leary commenting on criticism other economists, like JPMorgan Chase CEO Jamie Dimon, have voiced in warning that tariffs would put a damper on the economy. O'Leary recognized potential negative impacts from extended tariffs but stressed that tariffs are a function of a greater negotiation.

"Yes if these tariffs stay in place in perpetuity at 25% rate he would be right," O'Leary stated.

However, he clarified that these tariffs are part of a larger strategy aimed at trade negotiations, which he believes could lead to favorable terms for the US. According to O'Leary, the Trump administration’s aggressive approach is a necessary part of the bargaining process.

"Trump is not shy of being bombastic... you may find the rhetoric painful but that's not the key," he explained.

The Shark Tank investor sees the tariffs as a temporary measure designed to force other countries into trade discussions, which could ultimately benefit the US economy.

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Long-term US growth prospects

Despite the current tariff talks, O'Leary was optimistic about the long-term expansion of the US economy. In his opinion, the current economic climate is still good, based on his dealings with private businesses in which he has investments. Implying that most businesses are doing well even with the volatility of the market, he stated,

"I have not seen a decline in orders from my own tear sheets and private companies I'm invested in."

The Shark Tank investors' long-term outlook is rooted in the idea that economic fundamentals are sound.

"I'm looking at it and I've started to nibble... 17 PE sounds pretty good to me on the S&P 500," he said.

He underscored his approach of encouraging investors to remain focused on the long-term potential of the market, even in the face of short-term challenges.

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