With the Fed Stuck Among Many Rocks and Multiple Hard Places, David Einhorn Charts a Value-Focused Course

Published on
February 17th, 2022
Duration
33 minutes


With the Fed Stuck Among Many Rocks and Multiple Hard Places, David Einhorn Charts a Value-Focused Course

The Larry McDonald Series ·
Featuring David Einhorn and Larry McDonald

Published on: February 17th, 2022 • Duration: 33 minutes

The yield curve is flattening, inflation is soaring, and the Federal Reserve is preparing to embark on its first rate-hiking cycle since 2015-18. The trouble is, a path that meaningfully addresses “sticky” rising producer and consumer prices could very well result in the inversion of the yield curve. And inversions typically signal recessions. At the same time, according to David Einhorn, founder and president of Greenlight Capital, it’s “not obvious what will get it [inflation] under control.” Einhorn, famous for shorting Lehman Brothers before its collapse in 2008, notes that Greenlight’s portfolio is built to withstand whatever the coming monetary tightening may bring. He talks with New York Times best-selling author and Bear Traps Report founder Larry McDonald about macro factors impacting markets, including rapidly rising inflation as well as supply-chain problems. In the first half of a two-part interview, Einhorn says that valuation compression for tech stocks as we emerge from the “easy money” era is likely to mean rotation into value stocks and hard assets. Tune in tomorrow for Part 2 and more insights from one of the biggest names in the hedge fund universe. Recorded on February 3, 2022. For more information on The Bear Traps Report visit : https://www.thebeartrapsreport.com/ For Part 2 of this interview, check out: https://rvtv.io/3LCnFT8