- Steve Eisman reduces portfolio risk, cites Trump-era geopolitical talks driving market volatility for months.
- Bitcoin dominance rises as Fed tightens policy; altcoins lag until monetary easing resumes, Cowen notes.
Steve Eisman, the investor recognized for predicting the 2008 housing market collapse, recently shared his current approach to the stock market: caution. In a CNBC interview, Eisman revealed he has reduced risk exposure in his personal portfolio, citing prolonged volatility tied to ongoing geopolitical negotiations under the Trump administration. “I’m waiting,” he stated.
“Resolving trade and policy disputes across multiple countries could take months, not weeks. Markets will likely remain unstable during this period.”
Eisman emphasized that while short-term predictions are challenging, certain stocks hold long-term potential.
He singled out Nvidia (NVDA) and Apollo Global Management (APO), noting their foundational strengths in artificial intelligence and financial services, respectively.
“These companies are positioned to deliver returns over years, not months,” he said.
However, he avoided speculating on near-term performance, attributing uncertainty to unpredictable political developments.
“The president’s decisions are the primary variable now. I can’t forecast that,” he added.
Meanwhile, cryptocurrency analyst Benjamin Cowen offered insights into Bitcoin’s trajectory. Cowen suggested Bitcoin will maintain its advantage over alternative cryptocurrencies (altcoins) until U.S. monetary policy shifts.
He highlighted the “Total3” metric—altcoin market capitalization excluding Bitcoin and Ethereum—as a gauge for investor sentiment.
“Altcoin prices relative to Bitcoin have stalled,” Cowen explained. “This trend could persist until the Federal Reserve ends quantitative tightening.”
Bitcoin dominance, which measures Bitcoin’s market share relative to other cryptocurrencies, has risen steadily since mid-2023. Cowen linked this trend to tighter monetary conditions, arguing that investors favor Bitcoin’s established profile during economic uncertainty.
“If the Fed pauses tightening this summer, the narrative might change. Until then, Bitcoin remains the safer bet,” he said.
Both Eisman and Cowen underscore a broader theme: uncertainty in traditional and crypto markets is driving selective, patient strategies. Eisman’s focus on durable equities and Cowen’s Bitcoin-centric outlook reflect a shared emphasis on weathering short-term down. For now, their advice aligns: avoid impulsive moves, prioritize stability, and prepare for shifts that could unfold over months, not days.
