David Einhorn: There is no effort to reduce the deficit, buy gold

Forex Short News

Hedge fund manager David Einhorn is on CNBC:

  • There’s not even the beginning of a plan to do anything about the deficit until it’s a crisis
  • DOGE talked about $2 trillion in savings, it maybe found $150 billion
  • Tariffs might raise $100 billion
  • I don’t understand why the trade deficit is a problem
  • I’ll be happy if gold goes to $3500, or $3800 but not if it goes to $30,000
  • The administration is ‘building a retreat’
  • I don’t see a great incentive for other countries to really negotiate with the US
  • I’m pretty sure that in a few months we’ll be talking about other things (than tariffs)
  • I don’t think the USA is coming across as a reliable partner
  • Says he’s short leveraged MSTR leveraged ETFs and hedged with a long MSTR. Explains it’s a costly ETF to run because it can’t use swaps and must buy high-priced options instead

Einhorn pitcked LanXess, a German chemical company.

“Today, I’m presenting a company where the management has made excellent strategic decisions, but the stock has suffered due to a lot of bad luck,” he said. “The opportunity today is to realize that the troubles have largely passed and that the company is likely to be on a successful path to realizing the benefits of its transformation.”

This article was written by Adam Button at www.forexlive.com.