Greenlight Capital’s David Einhorn on the US election – doesn’t matter who wins

A dour view from Greenlight Capital’s David Einhorn in a note to investors:

  • From a market perspective, we don’t think it matters very much who wins
  • “The economic policies of both parties are remarkably similar.
  • Both favour large deficits despite a strong economy.
  • We believe this supports our ongoing expectations of higher secular inflation in the coming years

Higher inflation argues that interest rates will remain higher than otherwise. At the margin.

Nearer term, markets are favouring a September Federal Reserve rate cut:

This article was written by Eamonn Sheridan at www.forexlive.com. Source