In a recent interview on Bloomberg Television, Steve Eisman of Neuberger Berman, who gained prominence from “The Big Short,” shared insights on the impending U.S. election and his investment strategies. Eisman identified three significant current themes, including cryptocurrency, about which he expressed skepticism.
Steve Eisman’s Take: Trump’s Re-Election and the So-Called Crypto Conundrum
Steve Eisman, an American businessman and investor renowned for capitalizing on the U.S. housing bubble collapse in 2007-2008 by betting against collateralized debt obligations (CDOs), gained further recognition through Michael Lewis’s book “The Big Short” and Steve Carell’s portrayal of him in the film adaptation.
In a recent interview with Bloomberg, Eisman confidently told the show’s hosts, “It is completely inevitable at this point that Donald Trump will win every single swing state and will get elected.” He also shared his views on the U.S. Federal Reserve and his outlook on artificial intelligence (AI). Moreover, Eisman emphasized that three significant themes are defining our era.
Eisman stated:
There are three great themes of our time, there’s AI, everything having to do with infrastructure, and there’s crypto, I believe in the first two but I don’t believe in the third.
Eisman raised a query concerning whether cryptocurrency qualifies as a currency. He noted that proponents of crypto often highlight the shortcomings of fiat currencies and describe bitcoin as “digital gold.” “That’s the thesis,” Eisman commented. He then observed that cryptocurrencies like BTC “act exactly the opposite of its own thesis” and added, “its correlation to Nasdaq is like 75%.”
He added:
So to me, it’s just another way for people to speculate on speculating.
In his discussion, Eisman presents a nuanced view of investment, emphasizing a cautious yet informed approach toward emerging technologies and market trends. He dismisses the notion of having an exclusive edge, arguing that the real advantage lies in interpreting common facts differently. While skeptical of cryptocurrencies, Eisman is extremely optimistic about the potential of AI and the imminent need for technological advancements in everyday devices like smartphones.
What do you think about ‘The Big Short’ investor Steve Eisman’s perspective? Share your thoughts and opinions about this subject in the comments section below.
