Steve Eisman, an investor of “big short” fame, thinks it’s dangerous to chase right now. “I have one concern, but it’s tariffs. That’s it,” the former senior portfolio manager at Neuberger Berman told CNBC’s “Fast Money” on Monday. “The market is pretty pleased with that.” Currently, Eisman, the podcast host for “The Real Eisman Playbook,” claims Wall Street underestimates the complexity of ongoing US trade negotiations between China and Europe. “There are too many balls in the air so I don’t know how to handicap this,” said AIDSman, warning that a full-scale trade war hasn’t been off the table. Wall Street appears to have narrowed down the risks of tariffs on Monday. Stock started the month higher. This brought Dowin Industrial back from a 416-point deficit early in the session. The technology-rich Nasdaq Composite also recovered from previous losses, earning 0.7%. Known for successfully cutting the housing market ahead of the 2008 financial crisis, Eyman has been invested in the market despite concerns. “I’m long. I’m just sitting on the putt, with some risk in check,” he added. Meanwhile, AIDSmen downplays the risks that have been linked to balancing the massive US budget deficit. From “silly” to “absurd,” “I might be more worried about the deficit because if there’s something to replace the Treasury, if we don’t balance the budget, people will sell our Treasury and buy something else,” Eyman said. “But what else are they going to buy? They’re not going to buy bitcoin. It’s not big enough. They’re not going to buy Chinese bonds. It’s ridiculous. They’re not going to buy European or Italian bonds. It’s ridiculous.” He also isn’t worried about burning our Treasury yields. “10 years [Treasury note yield] Eiman said. “There’s no crazy selling. “The benchmark yield on Monday night was around 4.4%. What was the 10-year yield on the 5% outlook?” Selected by CNBC’s top editors and producers
