On with Kara Swisher How Trump's Policies Will Shape the Stock Market with Aswath Damodaran
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Feb 27, 2025 
Aswath Damodaran, the Professor of Finance at NYU's Stern School, dives into the intricacies of stock market valuations in light of Trump's policies. He debates whether the market is overvalued, particularly amidst rising tech stock concerns and the dominance of 'MAG-7' companies. The conversation touches on the impact of trade tensions and immigration policies on corporate decisions and IPO activities, while also analyzing the stock performance of companies like NVIDIA and Palantir amidst broader economic challenges.
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Overvalued Market
- U.S. stocks are likely overvalued due to a two-year bull run and low-risk premiums.
- Tech stocks, especially the "Magnificent Seven," have disproportionately driven market gains, creating a concentration risk.
Market Jitters
- Market jitters are caused by constant shocks and exhaustion from rapid changes.
- The economy, like the market, is due for a slowdown after years of resilience.
Doge's Impact
- While acknowledging the need for budget reform, Damodaran criticizes Doge's approach as reckless.
- He suggests a targeted, incremental approach to avoid unintended consequences.
