Steve Eisman, the hedge-fund manager famous for predicting the 2008 financial crisis, warns investors to be cautious of stocks and identifies sectors to avoid. He believes the consumer is in a relatively stable position, but higher interest rates make it more expensive to buy big-ticket items like houses and cars, impacting sectors that rely on consumer financing. Eisman advises against owning home builders and companies that finance cars or used cars. He also states that banks are "uninvestible" due to net interest margin problems. Eisman emphasizes the need for humility in predicting recessions and suggests waiting for data to confirm any economic downturn.
Steve Eisman, the legendary investor who predicted the 2008 housing market crash, is betting big on US infrastructure and greenification initiatives, citing the need for significant investments in the electrical grid. He has already seen success with utility stock Quanta Services, which has climbed around 34% since the start of 2021. While he acknowledges that tech stocks are investible for a long time, he believes there are other investment opportunities worth exploring beyond the hype around the sector.
Steve Eisman, the investor who was featured in the book and movie "The Big Short," is currently shorting two Canadian banks and a German insurer due to concerns about their exposure to risky loans. He also believes that the current market is tough and that investors should be cautious. Eisman is known for his successful bet against the subprime mortgage market in 2008.
