A senior portfolio manager at Neuberger Bergman who predicted the 2008 financial crisis warns that people have come into this year feeling ‘too good and bullish.’
‘Big Short’ investor Steve Eisman warned that people have a ‘benign view of the economy’ and said there was ‘no reason’ for the Federal Reserve to cut rates three times this year.
Eisman told CNBC last night that investors are setting themselves up for disappointment and markets could suffer as a result.
According to the channel, on the year’s first day of trading, the tech-heavy Nasdaq fell 1.6 percent, the S&P 500 fell 0.6 percent, and the Dow got by with a gain.
‘Big Short’ investor Steve Eisman warned that people have a ‘benign view of the economy’ and said there was ‘no reason’ for the Federal Reserve to cut rates three times this year
Steve Carell portrayed the investor in the 2015 movie ‘The Big Short’
By the end of 2023, the Nasdaq had rallied 43 percent, the S&P 500 reached 24 percent and the 30-stock Dow was up nearly 14 percent.
The investor, who Steve Carell portrayed in the 2015 movie ‘The Big Short’ said: ‘Everybody’s just a little too fricking happy.
‘The market climbed a wall of worry the whole year. So, now here we are a year later, and everybody including me, has a pretty benign view of the economy.
‘It’s just that everybody is coming into the year so bullish that if there are any disappointments, you know, what’s going to hold the market up?’
‘Long term, I’m still very bullish. But near term I just worry that everybody is coming into the year feeling too good.’
The investor said: ‘It’s just that everybody is coming into the year so bullish that if there are any disappointments, you know, what’s going to hold the market up’
He also advised on how to make money in Bank of America
He also advised on how to make money in Bank of America.
‘The earnings are flat-ish in the last few years. How are you going to make money in Bank of America? You’re going to need two things.
‘You need the Fed to cut rates so that will help people’s perception of the balance sheet and you need no recessions so benign credit.
‘Could that happen? Sure.’
Eisman advised on how to make money in Bank of America while on the talk show
Along with Michael Burry and John Paulson, Eisman predicted and profited from the collapse of the mid-2000s housing market that caused the last financial crisis
Talking about the Federal Reserve cutting rates, Eisman said: ‘If you had to lay your life on the line, I’d say one [cut] unless there’s a recession.
‘If there’s no recession, I don’t see any reason why the Fed needs to be aggressive at cutting rates.
‘If I’m in [Fed chief Jerome] Powell’s seat, I pat myself on the back and say ‘job well done.’
Along with Michael Burry and John Paulson, Eisman predicted and profited from the collapse of the mid-2000s housing market that caused the last financial crisis.
A bullish stock is described as a stock that is increasing in price. A bull market is a financial market condition where prices are rising or expected to rise.