Steve Eisman, one of the few traders who profited from taking a major short position in sub-prime mortgages before the financial collapse thinks we could be entering the golden age for bank stocks. Eisman was profiled by Micheal Lewis in “The Big Short.” See the movie and if you have the time, read the book.
Marketwatch has the story
Eisman, whose story was told in Michael Lewis’s “The Big Short,” wagered correctly that these mortgage securities would eventually rock the financial system to its very core
Now, Eisman is espousing a much more bullish position in the banking sector, which has benefited mightily from President-elect Donald Trump’s promises to roll back a spate of financial regulations. Proponents of deregulation claim new rules ushered in along with the Dodd-Frank regulations in the aftermath of the financial crisis have hemmed in large lenders, hampering their profitability.
But Eisman, who works at money manager Neuberger Berman, says the era of Trump will be a “golden age” for the banking sector. “I think over the next couple of years there will be more leverage, and this will be a golden age of investing in financial stocks,” he told CNBC during an interview early Monday in New York.
He said he was “as long as he could be” in the banking sector.
Jeremy Jones, CFA
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