The man who predicted the 2008 global financial crash and inspired the film The Big Short is not worried about the state of the country’s economy.
Steve Eisman, a portfolio manager at Neuberger Berman, said on Friday that he sleeps ‘very well’.
Speaking to CNBC, he said the financial industry was now ‘so well capitalized’ that he didn’t foresee ‘any problems emerging for a very long time’.
‘I sleep very well. I just don’t see any systemic risk on the horizon,’ Eisman said.
Steve Eisman, one of the men who predicted the GFC, said on Friday that he sleeps ‘very well’ and sees no economic danger on the horizon
His remarks are music to the ears of Trump-supporting financiers who have been riding an unprecedented wave of Wall Street success since the president was inaugurated last January and who feared catastrophe last month when the stock market suddenly plunged.
The DOW and S&P 500 fell into correction in February after months of steady gains and fell by up to 10 percent.
Eisman did not fret the loss as he spoke on Friday.
His confidence in the markets, he said, came from heavy regulations and proper management within the top firms.
He touted CitiGroup as the most promising because its leaders are ‘managing the company properly.’
‘I think over time it has the most potential upside,’ he said.
It is a tune he has been singing for weeks.
The New York Stock Exchange on Friday. After months of historic gains, the markets fell into correction territory in February and have been making slow increases since
Both the DOW and the S&P 500 closed higher than they opened on Friday but they are clawing back to their January 26 record highs
At the end of February, despite the losses, Eisman said: ‘I haven’t been this positive on the banks since the 1990s.
‘We’re going to go through for the next several years a massive deregulation of the financial services sector.
‘From a stock perspective this is very positive for the financial services sector.’
The DOW and S&P 500 closed on Friday higher than they had opened.
Both are still considerable amounts away from their record highs on January 26 when the DOW hit 26,616, its highest ever, and the S&P 500 reached 2,872.
Eisman was played by Steve Carell in the film The Big Short. Ryan Gosling also appeared