“Shark Tank” investor Kevin O’Leary isn’t known for keeping his predictions small. With the 2026 midterm elections behind him, he is already looking ahead to three possible economic shifts in 2027.
In a Nov. 5 X post, O’Leary shared a video outlining what he called his three “big” predictions for the year ahead. His list includes ending the U.S.-Canada trade war, passing the Digital Asset Clarification Act, and ending wars in the Middle East.
Read more: Kevin O’ Leary calls this the ‘best side hustle’ that turns $0 into $10,000 in 30 days
“Okay, here’s my prediction for 2027. Are you ready? I’m going to take the risk,” O’Leary said in the video.
His reasoning came down to economics. He believes trade tensions, an outdated financial system and the financial cost of rising oil prices will ultimately push the government to make changes.
Here are three developments he thinks are on the horizon.
The U.S. and Canada have put their trade war behind them
O’Leary’s first prediction could be fantastic for businesses on both sides of the border. He expects the trade war between the United States and Canada to end, not because political leaders suddenly become friends but because it becomes too expensive to continue fighting.
“The North American economy’s biggest rival is China,” O’Leary said.
He believes both economies need to work together to shoulder the defense spending needed to deal with this threat. In his view, tariffs and trade barriers only create hindrances.
His proposed solution involves a closer economic partnership between neighboring countries.
“Unless the two economies merge, there will not be enough money to pay for defense,” he said. He quickly clarified that he meant “not the countries, but the economies.”
His prediction is that trade wars and tariffs will eventually disappear out of economic necessity.
Bloomberg/Getty Images
The Clarity Act finally crosses the finish line
O’Leary’s second prediction concerns the digital asset industry, where regulatory uncertainty remains a major obstacle.
He expects the Clarification Act, which aims to establish clearer rules for digital assets and cryptocurrency markets, to be passed in 2027.
His argument focused on modernization. O’Leary believes that tokenization and blockchain technology can make financial transactions faster and more efficient, replacing systems that have been in place for decades.
“Tokenization is a great idea to simplify the financial services system,” he said.
He also questioned why some parts of the financial system still rely on outdated technology.
“Some of the ways we transfer money are from the 1960s, but they haven’t been upgraded,” O’Leary said.
He believes that many of these problems can be solved by moving more financial activities to the blockchain.
For the crypto industry, passage of the Clarification Act could represent an important step toward regulatory certainty. O’Leary believes the economic benefits of modernizing financial infrastructure will ultimately make the legislation difficult to ignore.
More economical:
- Kevin O’Leary expresses strong concerns about inflation
- Goldman Sachs makes judgment on inflation and employment
- Bank of America issues stern warning to Fed and economy
The conflict in the Middle East is coming to an end
The third forecast has potentially significant implications for global energy markets.
O’Leary expected the war in the Middle East to end by the end of 2027 and pointed to the pressure that rising oil prices are putting on major energy importers.
“India, China, Japan and countless other countries cannot tolerate oil at more than $100,” he said.
His argument is that the economic consequences extend far beyond the United States. Countries that rely heavily on imported energy have strong incentives to push for solutions.
O’Leary admitted he didn’t know exactly how the conflict would end, but he believed it would be resolved in 2027.
He also made specific predictions about shipping in the Strait of Hormuz, an important channel for global oil transportation.
“By the end of 2027, the strait will be open and 120 ships will pass through it every day, just like before the conflict started,” he said.
This is a bold prediction, especially given the considerable uncertainty surrounding energy supplies in the region and globally.
O’Leary says economic math will win
All three predictions have one thing in common. O’Leary believes economic pressure will eventually force the government to make decisions that have been delayed by political divisions.
Whether it’s North American trade, cryptocurrency regulation or energy costs, he believes financial necessity is the driving force behind what happens next.
He doesn’t think investors will have to wait long to see whether his prediction holds true.
“There were three big predictions and you didn’t have to wait that long to find out I was right,” O’Leary said.
Related: Read more: