Famous for spotting one of the darkest trends in market history, Steve Eisman is feeling a bit more upbeat these days.
Eisman rose to fame after shorting the US housing market prior to the 2008 crash. He recently shared his takes on several market trends, including the recent interest rate cut and booming AI market.
Speaking with CNBC after Wednesday’s rate-cut decision from the Fed, Eisman said he thinks the central bank’s latest cutting cycle will be short-lived.
“At the end of the day, I think the most that the Fed’s going to cut interest rates by is 100 basis points total and then that’s it,” he said. He added that he doesn’t see the latest round of monetary easing as a game-changer for investors.
A total of 100 basis points of cuts beginning with this week’s move would mirror the Fed’s previous rate-cutting cycle that ended in December 2024.
While Eisman predicts that lowering rates is likely to spur some activity in the housing market, he said that he doesn’t think it will unlock the previously frozen market, a perspective shared by other experts.
While the rate cuts might be a bit of a dud for markets, he thinks the main event is still going strong, and that’s AI. He described the booming tech as the biggest story for the market right now and credited it with driving both stock movement and the broader economy.
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“It’s the most important thing that I focus on right now,” he said.
Eisman noted that he views the rise of AI hardware as the most significant development, and added that he’s very interested in power sources for AI firms. While he acknowledged that it may be too early to properly assess the fast-growing industry, Eisman cited nuclear energy as one area he follows.
“If you told me 10 years ago we’d be talking about nuclear anything, I think it’d be pretty shocking,” he said. “The power part of the story is very exciting.”
