Taps Coogan – April 24th, 2023

Steve Eisman, fund manager at Neuberger Berman and investing legend from the Global Financial Crisis, recently spoke with CNBC about his relatively agnostic outlook for markets and the economy, noting that he’d expect markets to rally if the Fed stopped hiking and that, while a recession may happen, it’s not baked in.

 

Some excerpts:

“I think there is definitely a slowdown. I think it’s way too early to talk about a recession even though financial conditions have tightened somewhat, but it’s not even clear how much they’ve really tightened.”

“…If the Fed stopped raising rates, I don’t think there’s any question that there’d be a sharp rally at that point and then people would really focus on what’s going to happen to the economy… If the data points start to get really bad then I think the market will focus on that… The situation is just so fluid that… you don’t need to be a hero… I think you have to wait.”

“2% (inflation) will be very very difficult given how much wages are going up. I would be satisfied with 3% (inflation)…”

There is more to the interview so enjoy it above.