‘Big Short’ investor Steve Eisman who predicted 2008 financial crisis worries ‘everybody is coming into the year feeling too good’
- 'Steve Eisman warned that people have a 'benign view of the economy'
- He also advised on how to make money at Bank of America while being on TV
- Eisman said last night that investors are preparing for disappointment and that markets could suffer
A senior portfolio manager at Neuberger Bergman who predicted the 2008 financial crisis warns that people entered this year feeling “too good and optimistic.”
'Big Short' investor Steve Eisman warned that people have a “benign view of the economy” and said there is “no reason” for the Federal Reserve to cut interest rates three times this year.
Eisman said CNBC last night that investors are preparing for disappointment and that markets could suffer.
According to the channel, the tech-heavy Nasdaq fell 1.6 percent on the first trading day of the year, the S&P 500 fell 0.6 percent and the Dow Jones eked out a profit.
'Big Short' investor Steve Eisman warned that people have a “benign view of the economy” and said there is “no reason” for the Federal Reserve to cut interest rates three times this year
Steve Carell portrayed the investor in the 2015 film 'The Big Short'
By the end of 2023, the Nasdaq was up 43 percent, the S&P 500 reached 24 percent and the 30-stock Dow Jones was up almost 14 percent.
The investor, who played Steve Carell in the 2015 film 'The Big Short', said: 'Everyone is just a little too happy.
“All year long the market has been climbing a wall of worry. So now here we are a year later, and everyone, including myself, has a pretty benign view of the economy.
“It's just that everyone is going into the year so optimistic that if there are disappointments, what will hold the market back?”
'In the long term I am still very optimistic. But in the short term, I'm afraid everyone will start the year too well.'
The investor said, “It's just that everyone is going into the year so optimistic that if there are any disappointments, you know, what's going to hold the market back.”
He also advised on how to make money at Bank of America
He also advised on how to make money at Bank of America.
'Profits have remained stable in recent years. How are you going to make money at Bank of America? You need two things.
“You need the Fed to cut rates to help people's perception of the balance sheet, and you don't need recessions that are so good for credit.
'Can that happen? Certainly.'
Eisman advised during the talk show how to make money at Bank of America
Along with Michael Burry and John Paulson, Eisman predicted and capitalized on the housing market collapse of the mid-2000s that caused the last financial crisis.
Speaking about the Federal Reserve's interest rate cut, Eisman said, “If you had to risk your life, I would say: [cut] unless there is a recession.
“If there isn't a recession, I don't see any reason why the Fed should be aggressive in cutting rates.
'When I'm inside [Fed chief Jerome] Powell's chair, I pat myself on the back and say 'good job.'
Along with Michael Burry and John Paulson, Eisman predicted and capitalized on the housing market collapse of the mid-2000s that caused the last financial crisis.
A bullish stock is described as a stock that is rising in price. A bull market is a situation in the financial market in which prices are rising or are expected to rise.