Moses warns DOGE's cuts hurt economic growth significantly

Investor Danny Moses, known for his success in the housing crisis, shared concerns about the economy on CNBC. He believes the market is overlooking the negative effects of recent federal spending cuts linked to the Department of Government Efficiency, led by Elon Musk. Moses argues that these cuts could harm corporate revenue growth and lead to layoffs. He noted that Musk’s initiatives have already resulted in cutting over 60,000 federal jobs across various agencies. "We're hurting the revenue side," Moses said, warning that the U.S. debt could be a risk if not managed properly. He also mentioned that when companies report their earnings for the first quarter, we might see signs of a market slowdown and declines in consumer confidence. Moses thinks this downturn is not yet reflected in current market prices. Adding to this, President Trump's trade policies have raised concerns over a possible economic slowdown. This fear contributed to a pullback in the S&P 500 index, which has since recovered slightly but remains around 8% lower than its record high from February. Despite these challenges, Moses is optimistic about gold investments and highlighted that he supports online gambling stocks, such as Genius Sports. He believes these companies are less affected by tariffs and are quickly adopting artificial intelligence technologies.