‘Big Short’ Investor Steve Eisman Issues Stock Market Warning, Says He Has ‘One Concern’ Right Now

Wall Street veteran Steve Eisman is highlighting one concern he has about the stock market.

In a new CNBC interview, the investor who predicted the US housing bubble in 2007/2008 and was subsequently profiled in The Big Short movie says tariffs are his “one concern.”

“That’s it. I mean the market’s gotten pretty complacent about it. But you know in any trade negotiation the details really matter and I think negotiating with Europe about tariffs is incredibly complicated because each country effectively has a veto on any issue that it wants, that thinks it’s important.

And I don’t know what’s going to happen with China. I just don’t know how to handicap this because there’s just too many balls in the air. So I mean I’m long only, I’ve taken some risks down and I’m just sitting pat.”

Citing the recent results of artificial intelligence (AI) chipmaker NVIDIA, where revenues jumped 69 quarter-on-quarter, Eisman says a trade war could make the rapid growth of the AI sector irrelevant over the short term.

“Those numbers were wild… when you think about it… what is this? A $3 trillion company whose revenue grew 69? It’s unbelievable when you think about it. It’s insane.

So, I just think the AI revolution is early. But if, god forbid, there’s a trade war, none of that will matter in the near term. It just won’t.”