Trump blows up the dollar, Nvidia balloons, OPEC ends: Saxo's 2025 outrageous predictions
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TRUMP BLOWS UP THE DOLLAR, NVIDIA BALLOONS, OPEC ENDS: SAXO'S 2025 OUTRAGEOUS PREDICTIONS
It's that time of year; inboxes are bursting with outlook pieces, and as usual Saxo's "Outrageous Predictions" stand out.
From Trump blowing up the U.S. dollar, to an electrification boom ending OPEC and the first bio-printed human heart, the 2025 edition lives up to its customary shock factor.
They are of course aimed at sparking discussion rather than being an official forecast. But even Saxo admits while highly unlikely, they could just happen, and they'd send shockwaves across financial markets if they did.
They kick off with Trump 2.0, a likely defining story of 2025 that Saxo imagines in the extreme.
"In 2025, the new Trump administration overhauls the entire nature of the U.S. relationship with the world, slapping massive tariffs on all imports, while slashing deficits with the help of an Elon Musk-run Department of Government Efficiency (DOGE)."
A quadrupling crypto market, 20% fall in the U.S dollar against major currencies and 30% versus gold would ensue.
Eyewatering figures feature in the others, one of which is Nvidia ballooning to twice the value of Apple on more availability of a revolutionary AI chip.
"This sees it tower above all other companies in the world at a value of USD 7 trillion, or 10% of the global equity market," envisions Saxo.
Other far-fetched predictions include China unleashing CNY50 trillion of stimulus, the first bio-printed human heart and a natural disaster bankrupting a large insurance company.
The pound erasing its post-Brexit discounts versus the euro is another, as well as the U.S. imposing an AI data centre tax as power prices run wild.
It all sounds pretty crazy.
But readers might respond with a wry smile when reminded of some of Saxo's previous outrageous predictions that in hindsight don't sound so outlandish.
They include a 2017 prediction that Bitcoin triples in value to $2,100 and a 2018 one that volatility could spike after flash crash in stock markets.
Well Bitcoin is now a sliver away from $100k, and does anyone remember what happened to the VIX in August 2024?
Saxo's 2017 prediction of Britain leaning towards an exit from the EU needs no mention.
So perhaps investors should take notice before consigning all of 2025's to the comedic.
(Lucy Raitano)
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