Steve Eisman is the investor who saw the crisis in the US housing market before most. On Monday, he tells CNBC that the stock market can continue to rise as long as there are no signs of recession.
“So far we see no evidence that we are in a recession. As long as there is no evidence of a recession, I think the market will continue to rise because people are chasing yield,” said Eisman, who now works as a portfolio manager at Neuberger Berman
The Dow Jones continues to tick upwards and has recently touched the record for the longest rise since 2017. The S&P 500 continues to rise on Monday is up more than 18 percent for the year, largely as a result of the index having the best first half of the year since 2019. The latest rise was triggered by lower expected inflation, which may give the Federal Reserve some breathing room in their tightening process.
“We started the year with what most people said was the most anticipated recession that never happened,” Eisman said.
This meant that many were very conservatively positioned, and are lagging behind. This means that they are now trying to catch up and keep up, he says.
Eisman is fully invested and will hold his best positions rather than realize the profit resulting from high taxation on capital.
“We are fully invested. Now the tax burden is very high, so if we sell something with a large profit and pay 35 percent tax, we would rather hold our positions,” said Eisman.
Have one concern
The well-known investor said he is concerned about the effect of the interest rate hikes and how it will affect the economy, which it has to a small extent so far.
“The only thing I worry about is that the Federal Reserve has raised interest rates a lot. It is certainly possible that it will have a very negative impact on the economy, and we are very concerned about that. But there is no data to support that at this time,” Eisman said.
2023-07-24 19:24:23
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