Einhorn Warns of Market Instability and Rising Inflation Post-Election

David Einhorn of Greenlight Capital argues that the stock market is "broken" due to the rise of passive investing, which he believes undermines value investing by prioritizing growth stocks. He criticizes passive investors for not considering stock value, leading to inflated valuations. Despite the market's high valuations, Einhorn is not bearish, acknowledging that an overvalued market doesn't necessarily predict a downturn. The shift to passive investing is seen as logical due to lower costs and the underperformance of active managers, but it challenges traditional value investment strategies.