“Shark Tank” investor Kevin O’Leary isn’t known for keeping his predictions small. And with the 2026 midterms behind the country, he’s already looking ahead to what could be three major economic shifts in 2027.
In a Nov. 5 post on X, O’Leary shared a video laying out what he called three “big” predictions for the year ahead. His list includes an end to the U.S.-Canada trade war, passage of the Clarity Act on digital assets, and an end to the war in the Middle East.
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“Okay, here are my predictions for 2027. Ready for this? I’m going out on a limb here,” O’Leary said in the video.
His reasoning comes down to economics. He believes the financial costs of trade tensions, outdated financial systems, and elevated oil prices will eventually push governments toward change.
Here are the three developments he thinks are coming.
The U.S. and Canada put their trade fight behind them
O’Leary’s first prediction might be music to the ears of businesses on both sides of the border. He expects the trade war between the U.S. and Canada to end, not because political leaders suddenly become friends, but because keeping the fight going becomes too expensive.
“The big adversary to the North American economy is China,” O’Leary said.
He argued that the two economies need to work together to afford the defense spending required to compete with that threat. In his view, tariffs and trade barriers only get in the way.
His proposed solution involves a closer economic partnership between the neighboring countries.
“There’s no way to have enough to pay for defense unless these two economies merge,” he said, quickly clarifying that he meant “not the countries, the economies.”
His prediction is that the trade war and tariffs will eventually disappear out of economic necessity.
The Clarity Act finally gets across the finish line
O’Leary’s second prediction concerns the digital asset industry, where regulatory uncertainty has remained a major hurdle.
He expects the Clarity Act, legislation aimed at establishing clearer rules for digital assets and cryptocurrency markets, to pass in 2027.
His argument centers on modernization. O’Leary believes tokenization and blockchain technology could make financial transactions faster and more efficient, replacing systems that have been around for decades.
“Tokenization is a good idea to streamline the financial services system,” he said.
He also questioned why parts of the financial system still rely on outdated technology.
“Some of the ways we transfer money came from the 60s and they haven’t been upgraded yet,” O’Leary said.
Moving more financial activity onto blockchain, he argued, would solve many of those problems.
For the crypto industry, passage of the Clarity Act could represent a major step toward regulatory certainty. O’Leary believes the economic benefits of modernizing financial infrastructure will eventually make the legislation difficult to ignore.
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The Middle East conflict comes to an end
The third prediction carries potentially significant implications for global energy markets.
O’Leary expects the war in the Middle East to be over by the end of 2027, pointing to the pressure that elevated oil prices place on major energy-importing nations.
“India, China, Japan, and countless other countries cannot live with oil over $100,” he said.
His argument is that the economic consequences extend well beyond the United States. Countries that depend heavily on imported energy have a powerful incentive to push for a resolution.
O’Leary acknowledged that he doesn’t know exactly how the conflict will end, but he believes a resolution will happen in 2027.
He also made a specific prediction about shipping through the Strait of Hormuz, a critical passage for global oil transportation.
“By the end of 2027, that strait will be open and 120 boats will go through there every day like it did before the conflict started,” he said.
That’s a bold forecast, particularly given how much uncertainty surrounds the region and global energy supplies.
O’Leary says the economic math will win
All three predictions share a common thread. O’Leary believes economic pressure will eventually force governments to make decisions that political disagreements have delayed.
Whether it’s North American trade, cryptocurrency regulation, or energy costs, he sees financial necessity as the driving force behind what happens next.
And he doesn’t think investors will have to wait very long to see how his forecasts hold up.
“There are three big predictions and you don’t have to wait that long to find out that I’m right,” O’Leary said.
