Renowned investor Steve Eisman has expressed confidence in the stability of the U.S. economy, dismissing fears of an impending recession.
What Happened: Eisman, who is known for predicting the 2008 housing crash, stated in a recent interview with CNBC that the U.S. economy is resilient. He attributes this to the strong market performance driven by investments in artificial intelligence and infrastructure.
“In bad times, people focus on better quality and balance sheets, and in good times they focus on stories, and we’re in story-time,” Eisman said.
Eisman highlighted Wall Street’s ongoing enthusiasm for AI and investments in America’s infrastructure boom as key drivers of the market’s recent trends.
NVIDIA Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL), among other mega-cap tech stocks, have recently achieved record highs, mirroring gains in infrastructure stocks like the iShares U.S. Infrastructure ETF (BATS:IFRA), which surged by 10% over the past year.
“All the economists who said that, because the Fed raised rates 500 basis points, was going to cause a recession, have been wrong, and we’re just powering through,” Eisman said. “I think the only conclusion you can reach is that the U.S. economy is more dynamic than it’s ever been in its history.”
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Why It Matters: Eisman’s optimism contrasts with other notable financial experts. In May, Eisman identified Nvidia and Advanced Micro Devices as clear AI investment opportunities, while calling Apple a “hidden” AI play.
However, in April, Eisman warned of a potential stock market bubble if the Federal Reserve cuts rates in 2024, suggesting that the economy does not need rate adjustments at this time.
Meanwhile, economist Peter Schiff recently cautioned that U.S. stocks are overpriced, urging investors to be selective in their investments.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
