First, the good news. Steve Eisman, whose bets against Wall Street’s toxic collateralised debt obligations landed him huge profits and a starring role in the book and movie version of“I think 2000 and 2008 for some investors is like PTSD,” Eisman told Bloomberg’spodcast. “So they see the markets go down and they say to themselves, ‘Oh my God, something bad is going to happen’.
“Sometimes those paradigms change violently, and sometimes those paradigms change over time because people don’t give up their paradigms easily,” he says.
The obvious question is, of course, what comes next? And Eisman believes the answer might involve one of Australia’s biggest stocks, BHP. “Stocks that haven’t done anything in 20 years, let’s say, might start to do well – like BHP, iron ore, etc. That’s one theme that I think will last a long time,” Eisman says.