Wall Street veteran Steve Eisman is highlighting one concern he has about the stock market.
In a new CNBC interview, the investor who predicted the US housing bubble in 2007/2008 and was subsequently profiled in The Big Short movie says tariffs are his “one concern.”
“That’s it. I mean the market’s gotten pretty complacent about it. But you know in any trade negotiation the details really matter and I think negotiating with Europe about tariffs is incredibly complicated because each country effectively has a veto on any issue that it wants, that thinks it’s important.
And I don’t know what’s going to happen with China. I just don’t know how to handicap this because there’s just too many balls in the air. So I mean I’m long only, I’ve taken some risks down and I’m just sitting pat.”
Citing the recent results of artificial intelligence (AI) chipmaker NVIDIA, where revenues jumped 69% quarter-on-quarter, Eisman says a trade war could make the rapid growth of the AI sector irrelevant over the short term.
“Those numbers were wild… when you think about it… what is this? A $3 trillion company whose revenue grew 69%? It’s unbelievable when you think about it. It’s insane.
So, I just think the AI revolution is early. But if, god forbid, there’s a trade war, none of that will matter in the near term. It just won’t.”
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