"Steve Eisman: No Evidence of Recession; Believes Stock Market Can Continue Climbing"

## Steve Eisman: No Evidence of Recession, Stock Market Could Continue to Rise Steve Eisman, the investor known for successfully predicting and profiting from the subprime mortgage crisis, believes that the stock market could continue its upward trend as long as there are no signs of a recession. Eisman, who is a senior portfolio manager at Neuberger Berman, made these comments during an appearance on CNBC's "Squawk Box." Despite concerns of an anticipated recession, Eisman points out that there is currently no evidence to support such claims. The Dow Jones Industrial Average recently achieved its longest rally since 2017, with 10 consecutive positive days. Similarly, the S&P 500 has experienced a rally of over 18% this year, marking its best first half since 2019. This recent market surge was triggered by softer-than-expected inflation readings, which could potentially give the Federal Reserve more room to maneuver in its tightening cycle. Eisman acknowledges that many investors entered the year with conservative positions, expecting an imminent recession that has yet to materialize. As a result, these investors are now scrambling to catch up with the ongoing market rally. Despite capital gains taxes, Eisman is choosing to stay fully invested in his winning positions instead of taking profits. He believes that the tax implications make it more favorable to hold onto his positions for now. Although Eisman remains optimistic about the current state of the market, he does express concerns about the potential negative impact of multiple rate hikes by the Federal Reserve. Despite these concerns, there is currently no data to support the notion that the economy will be affected in a detrimental way. Overall, Eisman's analysis suggests that as long as there are no signs of a recession and the economy continues to perform well, the stock market is likely to continue its upward trajectory. Investors, therefore, should remain vigilant and closely monitor economic indicators for any potential shifts in the market. ## Conclusion: Potential Impact on a New Business With investor Steve Eisman's optimistic outlook on the stock market and his belief that there is no evidence of an imminent recession, aspiring entrepreneurs looking to launch a new business might find this news encouraging. A thriving stock market and a strong economy can create a favorable environment for startups to flourish. Here are some potential impacts of Eisman's analysis on new businesses: 1. Funding Opportunities: A rising stock market typically signals increased investor confidence and willingness to invest in new ventures. Startups seeking funding may find that investors are more open to taking risks and offering financial support. 2. Consumer Spending: A robust economy can lead to higher consumer spending and increased purchasing power. This, in turn, can create opportunities for new businesses to attract customers and generate revenue. 3. Market Confidence: Positive market sentiment can have a ripple effect throughout the business landscape. It can boost consumer and investor confidence, making it easier for entrepreneurs to launch new ventures and gain traction in their respective markets. 4. Competition and Innovation: A healthy economy often fosters competitiveness and innovation. With more businesses thriving and consumers willing to spend, entrepreneurs may be inspired to bring new and innovative products or services to the market, driving economic growth further. However, it's important for new business owners to remain cautious and adapt to potential market shifts. While Eisman currently sees no evidence of a recession, economic conditions can change rapidly. Entrepreneurs should continue to monitor economic indicators, consumer trends, and market dynamics to make informed decisions and position their businesses for success. In conclusion, Eisman's positive outlook on the stock market and the absence of evidence for a recession may provide hopeful prospects for new businesses. However, entrepreneurs must remain proactive, agile, and adaptable to capitalize on the opportunities that a thriving economy can offer. Article First Published at: https://www.cnbc.com/2023/07/24/steve-eisman-says-stocks-can-keep-rising-since-theres-no-evidence-of-a-recession.html