Hedge fund manager Einhorn sees upside for gold and inflation
A hot streak for gold helped fuel a strong start to the year for Greenlight Capital, and hedge fund manager David Einhorn said Wednesday he still sees more upside for the yellow metal.
The price of spot gold has surged more than 20% this year, with most of those gains coming in the first quarter. Einhorn, the president of Greenlight, told CNBC's Scott Wapner that his long-term case for gold is still intact and that the commodity can continue to go higher.
'Gold is about the confidence in the fiscal policy and the monetary policy. And since we bought gold in 2008 or so, it's been very clear to me that the U.S. fiscal and monetary policies are both too aggressive and create a risk,' Einhorn said. Stock chart icon
Gold has outperformed stocks in 2025.
Einhorn pointed to the meager cost-cuts from the so-called Department of Government Efficiency, relative to the size of the federal government's budget, as a sign that the fiscal situation is unlikely to change any time soon.
'There's a bipartisan agreement to do nothing about the deficit until we actually get to the next crisis,' Einhorn said.
The hedge fund manager said that gold and other defensive positions have helped Greenlight have a strong start to the year. Reuters reported in April that Greenlight gained 8.2% in the first quarter, citing an investor letter. The S&P 500 fell more than 4% during the same period.
Einhorn did clarify that he does not view gold as an inflation bet. However, in a related trade, Einhorn said he has positions on long-duration inflation swaps, which serve as a bet that prices will rise faster than the market expects.
'All of these behaviors ultimately lead to inflation, and higher inflation,' Einhorn said.
The comments came on the sidelines of the Sohn Investment Conference in New York, where Einhorn had earlier unveiled his new investment in a German chemical company.
READ SOURCE
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
Are these the best American stocks for my ISA?
At the moment, US-listed stocks account for also exactly half of my ISA holdings. To be precise, around 42% of my Stocks and Shares ISA is in cash — I'm a little wary at the moment — and 29% in both international (all North American) and UK-listed stocks. So, why am I a little wary? Well, I'm being more selective about US stocks because the sharp rise in tariffs this year has fundamentally changed the investment landscape. Between January and April 2025, the average effective US tariff rate soared from 2.5% to 27%. These are levels not seen in over a century. It had settled slightly at 17.8% in May, but negotiations are ongoing. Such high tariffs are likely to be raising input costs, squeezing corporate profit margins, and dampening earnings growth. I'm focusing on the metrics because, in today's environment, growth alone isn't enough—valuations must be justifiable. With the S&P 500's forward price-to-earnings (P/E) ratio at 21.3 — above both 5- and 10-year averages — it's crucial to find companies where earnings multiples make sense relative to their growth prospects. As always I'm prioritising growth-adjusted ratios like the P/E-to-growth (PEG) ratio, which help identify stocks offering genuine value for their expected growth, but being even more selective than usual. So, who are they? Well, Pinterest (NYSE:PINS) stands out as fundamentally cheap by most metrics, while Alphabet (NASDAQ:GOOGL) trades at lower multiples than its peers despite similar growth trajectories. In my view, this makes both attractive, non-speculative picks in a market where speculation is increasingly risky. Pinterest currently trades at a forward P/E of 17.7 times and a PEG ratio of 0.53, reflecting strong expected earnings growth at a reasonable valuation. The company's AI-powered ad tools and a growing international user base have driven double-digit revenue growth, with Q1 2025 revenue up 16% year on year and global monthly active users reaching 570m. Despite these strengths, Pinterest remains heavily dependent on digital advertising, making it sensitive to shifts in advertiser budgets and broader economic cycles. It's also very geographically reliant on North America for revenues, and this represents a risk as well as an opportunity. The region represents less than one-fifth of total users but nearly 80% of sales. However, there's plenty to be positive about. Al really seems to be a game changer, and has contributed to the company's improving profitability and attractive growth profile. Alphabet trades at a forward P/E of 17.3 times. That's above the communications sector median of 13.6 but about 30% below its own five-year average, signalling a more attractive entry point relative to its history. The PEG ratio stands at 1.16, lower than the sector's 1.43, indicating solid expected earnings growth for its valuation. I'd also add that Alphabet is more than just a communications stock, which makes its valuation so attractive. Recent performance has been strong. In Q1 2025, Alphabet reported 12% revenue growth to $90.2bn, with Google Cloud up 28% and operating margin expanding to 34%. Risks? There are always risks even with some of the largest companies in the world. One here is Alphabet potentially being forced to divest Chrome in an anti-trust trial. However, for me, its wide economic moat and diversified growth engines underpin long-term appeal. I've recently bought both these stocks. The post Are these the best American stocks for my ISA? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. James Fox has positions in Alphabet and Pinterest. The Motley Fool UK has recommended Alphabet and Pinterest. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
3 hours ago
How major US stock indexes fared Friday, 6/6/2025
Stocks rose on Wall Street following a better-than-expected report on the U.S. job market. The S&P 500 climbed 1% Friday, marking its second weekly gain in a row. The Dow Jones Industrial Average added 1%, and the Nasdaq composite rose 1.2%. U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump's trade wars. Lululemon Athletica sank after lowering its profit forecast for the full year. On Friday: The S&P 500 rose 61.06 points, or 1%, to 6,000.36. The Dow Jones Industrial Average rose 443.13 points, or 1%, to 42,762.87. The Nasdaq composite rose 231.50 points, or 1.2%, to 19,529.95. The Russell 2000 index of smaller companies rose 34.89 points, or 1.7%, to 2,132.25. For the week: The S&P 500 is up 88.67 points, or 1.5%. The Dow is up 492.80 points, or 1.2%. The Nasdaq is up 416.19 points, or 2.2%. The Russell 2000 is up 65.96 points, or 3.2%. For the year: The S&P 500 is up 118.73 points, or 2%. The Dow is up 218.65 points, or 0.5%. The Nasdaq is up 219.16 points, or 1.1%. The Russell 2000 is down 97.91 points, or 4.4%.
Yahoo
3 hours ago
- Yahoo
Lemonade (LMND) Reports Q1 Earnings: What Key Metrics Have to Say
Lemonade (LMND) reported $151.2 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 27%. EPS of -$0.86 for the same period compares to -$0.67 a year ago. The reported revenue represents a surprise of +5.05% over the Zacks Consensus Estimate of $143.93 million. With the consensus EPS estimate being -$0.94, the EPS surprise was +8.51%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: In force premium (end of period): $1.01 billion compared to the $999.35 million average estimate based on four analysts. Premium per Customer (end of period): $396 versus $394.15 estimated by four analysts on average. Customers (end of period): 2,545,496 versus the four-analyst average estimate of 2,535,658. Net loss ratio: 82% versus the four-analyst average estimate of 89%. Gross loss ratio: 78% compared to the 80.8% average estimate based on four analysts. Net investment income: $9.50 million versus the four-analyst average estimate of $8.45 million. The reported number represents a year-over-year change of +25%. Ceding commission income: $26.90 million versus $22.06 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +28.1% change. Commission income: $10.50 million versus the four-analyst average estimate of $8.02 million. The reported number represents a year-over-year change of +72.1%. Net earned premium: $104.30 million compared to the $105.18 million average estimate based on four analysts. The reported number represents a change of +23.6% year over year. View all Key Company Metrics for Lemonade here>>>Shares of Lemonade have returned +6.7% over the past month versus the Zacks S&P 500 composite's +11.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
