Eisman Cuts Risk, Sees Volatility Ahead Due to Trump Talks

Steve Eisman, renowned for his prescient bets against the housing market during the American subprime mortgage crisis, has adopted a cautious stance towards the stock market. In a recent interview, Eisman revealed that he has reduced the risk in his personal portfolio, opting for a wait-and-see approach. He anticipates that market volatility will persist for an extended period due to the complex negotiations the Trump Administration is engaged in with multiple countries on various issues. Eisman believes these negotiations will take several months to resolve, thereby prolonging the current market volatility.

Despite his cautious outlook, Eisman remains optimistic about certain stocks. He highlights Nvidia and Apollo Global Management as having strong long-term fundamentals, suggesting they are poised for significant gains over multi-year periods. However, he acknowledges the uncertainty in the short term, stating that the market's direction is heavily influenced by the actions of the U.S. president, a variable he finds difficult to predict.

Regarding Nvidia specifically, Eisman sees the company as being in the early stages of the AI revolution. He predicts that the tech giant has considerable room for growth, underscoring his confidence in its long-term prospects. Eisman's insights reflect a broader sentiment among investors who are navigating the current market landscape with a mix of caution and strategic optimism.