"We're up almost 5% in every market": Shark Tank investor Kevin O'Leary on market confidence, tariffs, and government efficiency

In a Fox Business interview on February 18, 2025, Shark Tank investor Kevin O’Leary highlighted that the US market's confidence remains strong, with significant gains observed across multiple sectors. The Shark Tank investor noted,

"We’re up almost 5% in almost every market so far and we’re early into the first quarter.”

He attributed this rise to investor confidence in projected earnings for the S&P 500 over the next year. Kevin also emphasized that concerns about tariffs have not yet impacted market performance and noted that government efficiency initiatives are contributing to business optimism.

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Market trends, trade tariffs, and government oversight insights from Shark Tank's Kevin O’Leary

Market growth and investor confidence

The Shark Tank investor explained that the market growth is being driven by expectations of strong corporate earnings. He highlighted that investors are looking ahead and anticipating favorable results, as he stated,

"We're rallying because people see tremendous potential in S&P earnings over the next 11, 12 months."

Kevin also underscored that the current market performance does not reflect any negative effects of the latest tariff policies. Additionally, he noted that the current market stability is surprising given past trends, but suggested that regulatory changes are contributing to this outcome. He explained,

"The fact that Trump is really pushing on government efficiency and deregulation at the same time in every sector—all 11 sectors—is giving a lot of confidence at the CEO suite level that earnings will be met this year."

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Tariffs and trade agreements

O’Leary discussed the impact of tariffs, particularly those affecting Canadian oil imports. He explained that the original proposed tariff was higher but was later adjusted. The Shark Tank investor stated,

"The first idea was 25%, and then through a lot of work, I think that Danielle Smith [Canadian politician] did herself... she got a 10% tariff."

He explained that US refineries were specifically designed to process Canadian oil, making it difficult to find alternative sources that match the required specifications. O’Leary also pointed out that Canadian oil remains a cost-effective option, saying,

"The Canadian oil is $13 a barrel cheaper than any other, and it's 70% of the imports."

He further explained that the upcoming elections in Canada could impact trade negotiations, noting that the current leadership, including Freeland and Trudeau, is engaged in discussions with Trump, despite the latter's unfavorable view of them.

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Government audits and financial transparency

O’Leary also addressed federal spending audits, referencing recent disclosures by DOGE (Department of Government Efficiency) about untracked financial transactions. The news show host first commented,

"The Doge guys have revealed that $4.7 trillion worth of federal payments were untraceable."

In response to this, the Shark Tank investor emphasized the importance of auditing government agencies and underscored that it is the responsibility of any administration to review its financial activities. He pointed out that these findings have now been made public and have led to increased scrutiny, and he further stated,

"Even if only 80% of it's right, this is the right thing to do for every taxpayer."

O’Leary noted that when financial records are made transparent, they can lead to increased public scrutiny and calls for government efficiency. He explained that as voters become aware of these issues, they may demand corrective action.

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In other news, Shark Tank airs on ABC on Fridays at 8 PM ET, with episodes available for streaming on Hulu.