Latest news with #SohnInvestmentConference
Yahoo
17-05-2025
- Business
- Yahoo
Billionaire investor David Einhorn explains why gold will keep rising — and it's got nothing to do with inflation
"Gold is not about inflation," David Einhorn told CNBC. The billionaire investor says gold is rising on deficit fears. His fund crushed the S&P 500 last quarter thanks to a big bet on gold. David Einhorn's Greenlight Capital crushed last quarter by betting big on gold, and the hedge fund boss said the metal's big rally isn't done yet. Einhorn said that he sees gold continuing to rise even after a record-setting run so far in 2025, but he also said he'd be concerned if the price rose significantly higher. "I'd be really happy if it went to $3,500 or $3,800; I'd be really unhappy if it went to $30,000 or $50,000," the billionaire investor told CNBC on the sidelines of the Sohn Investment Conference in New York. Bullion briefly peaked at $3,500 per ounce in April, a move many have tied to tariff-linked inflation concerns. Gold is historically considered the premier hedge against runaway price growth, which could justify the metal's 22% surge so far this year. But even as prices have eased to a one-month low amid softer inflation data, Einhorn sees gold continuing to rally for other reasons. "Gold is not about inflation. Gold is about the confidence in the fiscal policy and the monetary policy," he said, suggesting that the government has become aggressive on both fronts, altogether contributing to a deficit policymakers are largely ignoring. In his view, gold's appreciation reflects disappointment in the efforts to slim the $1.9 trillion federal budget deficit. Einhorn pointed to the Department of Government Efficiency, an agency that initially promised to slash $2 trillion in federal spending. "A few months have gone by — It's like $150 billion, maybe," Einhorn said. "That's enough to cover next year's defense funding spending increase; that's going to get eaten up really, really fast." The same goes for tariffs, which the administration touted as a massive boost to government revenue. But Einhorn said the new duties appear set to bring in around $100 billion. Fiscal concerns will also continue to grow with the new tax policy, with Trump expected to extend his 2017 tax cuts. The bill unveiled by Congress this week is expected to add trillions to the deficit over 10 years. "We're not really concerned about the deficit. There's a bipartisan agreement to do nothing about the deficit until we actually get to the crisis," Einhorn summarized. If this continues to propel gold higher, that should continue to boost Greenlight's portfolio. The hedge fund beat the S&P 500 with an 8.2% gain in the first quarter, previously noting that gold's 19% advance made it the fund's "biggest winner." However, doubt has risen as to whether the precious metal can keep climbing this year. ING expects gold to average $3,128 per ounce through 2025, citing that some tailwinds are losing momentum. Read the original article on Business Insider Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Billionaire investor David Einhorn explains why gold will keep rising — and it's got nothing to do with inflation
"Gold is not about inflation," David Einhorn told CNBC. The billionaire investor says gold is rising on deficit fears. His fund crushed the S&P 500 last quarter thanks to a big bet on gold. David Einhorn's Greenlight Capital crushed last quarter by betting big on gold, and the hedge fund boss said the metal's big rally isn't done yet. Einhorn said that he sees gold continuing to rise even after a record-setting run so far in 2025, but he also said he'd be concerned if the price rose significantly higher. "I'd be really happy if it went to $3,500 or $3,800; I'd be really unhappy if it went to $30,000 or $50,000," the billionaire investor told CNBC on the sidelines of the Sohn Investment Conference in New York. Bullion briefly peaked at $3,500 per ounce in April, a move many have tied to tariff-linked inflation concerns. Gold is historically considered the premier hedge against runaway price growth, which could justify the metal's 22% surge so far this year. But even as prices have eased to a one-month low amid softer inflation data, Einhorn sees gold continuing to rally for other reasons. "Gold is not about inflation. Gold is about the confidence in the fiscal policy and the monetary policy," he said, suggesting that the government has become aggressive on both fronts, altogether contributing to a deficit policymakers are largely ignoring. In his view, gold's appreciation reflects disappointment in the efforts to slim the $1.9 trillion federal budget deficit. Einhorn pointed to the Department of Government Efficiency, an agency that initially promised to slash $2 trillion in federal spending. "A few months have gone by — It's like $150 billion, maybe," Einhorn said. "That's enough to cover next year's defense funding spending increase; that's going to get eaten up really, really fast." The same goes for tariffs, which the administration touted as a massive boost to government revenue. But Einhorn said the new duties appear set to bring in around $100 billion. Fiscal concerns will also continue to grow with the new tax policy, with Trump expected to extend his 2017 tax cuts. The bill unveiled by Congress this week is expected to add trillions to the deficit over 10 years. "We're not really concerned about the deficit. There's a bipartisan agreement to do nothing about the deficit until we actually get to the crisis," Einhorn summarized. If this continues to propel gold higher, that should continue to boost Greenlight's portfolio. The hedge fund beat the S&P 500 with an 8.2% gain in the first quarter, previously noting that gold's 19% advance made it the fund's "biggest winner." However, doubt has risen as to whether the precious metal can keep climbing this year. ING expects gold to average $3,128 per ounce through 2025, citing that some tailwinds are losing momentum. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Billionaire investor David Einhorn explains why gold will keep rising — and it's got nothing to do with inflation
"Gold is not about inflation," David Einhorn told CNBC. The billionaire investor says gold is rising on deficit fears. His fund crushed the S&P 500 last quarter thanks to a big bet on gold. David Einhorn's Greenlight Capital crushed last quarter by betting big on gold, and the hedge fund boss said the metal's big rally isn't done yet. Einhorn said that he sees gold continuing to rise even after a record-setting run so far in 2025, but he also said he'd be concerned if the price rose significantly higher. "I'd be really happy if it went to $3,500 or $3,800; I'd be really unhappy if it went to $30,000 or $50,000," the billionaire investor told CNBC on the sidelines of the Sohn Investment Conference in New York. Bullion briefly peaked at $3,500 per ounce in April, a move many have tied to tariff-linked inflation concerns. Gold is historically considered the premier hedge against runaway price growth, which could justify the metal's 22% surge so far this year. But even as prices have eased to a one-month low amid softer inflation data, Einhorn sees gold continuing to rally for other reasons. "Gold is not about inflation. Gold is about the confidence in the fiscal policy and the monetary policy," he said, suggesting that the government has become aggressive on both fronts, altogether contributing to a deficit policymakers are largely ignoring. In his view, gold's appreciation reflects disappointment in the efforts to slim the $1.9 trillion federal budget deficit. Einhorn pointed to the Department of Government Efficiency, an agency that initially promised to slash $2 trillion in federal spending. "A few months have gone by — It's like $150 billion, maybe," Einhorn said. "That's enough to cover next year's defense funding spending increase; that's going to get eaten up really, really fast." The same goes for tariffs, which the administration touted as a massive boost to government revenue. But Einhorn said the new duties appear set to bring in around $100 billion. Fiscal concerns will also continue to grow with the new tax policy, with Trump expected to extend his 2017 tax cuts. The bill unveiled by Congress this week is expected to add trillions to the deficit over 10 years. "We're not really concerned about the deficit. There's a bipartisan agreement to do nothing about the deficit until we actually get to the crisis," Einhorn summarized. If this continues to propel gold higher, that should continue to boost Greenlight's portfolio. The hedge fund beat the S&P 500 with an 8.2% gain in the first quarter, previously noting that gold's 19% advance made it the fund's "biggest winner." However, doubt has risen as to whether the precious metal can keep climbing this year. ING expects gold to average $3,128 per ounce through 2025, citing that some tailwinds are losing momentum. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Jim Chanos is Buying Bitcoin and Shorting Strategy
Jim Chanos, the veteran investor who made his name shorting Enron, is betting on bitcoin (BTC) trade while shorting Strategy (MSTR), the largest corporate holder of the biggest cryptocurrency. In an interview at the Sohn Investment Conference in New York with CNBC, Chanos detailed the bet. 'We're selling MicroStrategy stock and buying bitcoin,' Chanos said, calling it an arbitrage move: 'Basically buying something for $1, selling it for $2.50.' Strategy started acquiring bitcoin in 2020 and has since morphed into a bitcoin proxy for investors. The firm has issued debt and equity to accumulate the cryptocurrency, and now has a 568,840 BTC hoard bought at an average cost of $69,287 per aggressive bitcoin accumulation, backed by Wall Street analysts, has made its stock sensitive not just to bitcoin's price, but also to investor appetite for risk. Strategy's shares are up 3,500% in the last five years to now trade at $416 a piece, giving it a $115 billion market capitalization. To Chanos, Strategy's valuation doesn't make sense as MSTR shares have surged more than the price of bitcoin. The fund manager argues that this rise reflects retail speculation more than fundamentals, a theme he believes is echoed by other firms now trying to replicate Strategy's bitcoin accumulation in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
15-05-2025
- Business
- Business Insider
Billionaire investor David Einhorn explains why gold will keep rising — and it's got nothing to do with inflation
"Gold is not about inflation," David Einhorn told CNBC. The billionaire investor says gold is rising on deficit fears. His fund crushed the S&P 500 last quarter thanks to a big bet on gold. David Einhorn's Greenlight Capital crushed last quarter by betting big on gold, and the hedge fund boss said the metal's big rally isn't done yet. Einhorn said that he sees gold continuing to rise even after a record-setting run so far in 2025, but he also said he'd be concerned if the price rose significantly higher. "I'd be really happy if it went to $3,500 or $3,800; I'd be really unhappy if it went to $30,000 or $50,000," the billionaire investor told CNBC on the sidelines of the Sohn Investment Conference in New York. Bullion briefly peaked at $3,500 per ounce in April, a move many have tied to tariff-linked inflation concerns. Gold is historically considered the premier hedge against runaway price growth, which could justify the metal's 22% surge so far this year. But even as prices have eased to a one-month low amid softer inflation data, Einhorn sees gold continuing to rally for other reasons. "Gold is not about inflation. Gold is about the confidence in the fiscal policy and the monetary policy," he said, suggesting that the government has become aggressive on both fronts, altogether contributing to a deficit policymakers are largely ignoring. In his view, gold's appreciation reflects disappointment in the efforts to slim the $1.9 trillion federal budget deficit. Einhorn pointed to the Department of Government Efficiency, an agency that initially promised to slash $2 trillion in federal spending. "A few months have gone by — It's like $150 billion, maybe," Einhorn said. "That's enough to cover next year's defense funding spending increase; that's going to get eaten up really, really fast." The same goes for tariffs, which the administration touted as a massive boost to government revenue. But Einhorn said the new duties appear set to bring in around $100 billion. Fiscal concerns will also continue to grow with the new tax policy, with Trump expected to extend his 2017 tax cuts. The bill unveiled by Congress this week is expected to add trillions to the deficit over 10 years. "We're not really concerned about the deficit. There's a bipartisan agreement to do nothing about the deficit until we actually get to the crisis," Einhorn summarized. If this continues to propel gold higher, that should continue to boost Greenlight's portfolio. The hedge fund beat the S&P 500 with an 8.2% gain in the first quarter, previously noting that gold's 19% advance made it the fund's "biggest winner." However, doubt has risen as to whether the precious metal can keep climbing this year. ING expects gold to average $3,128 per ounce through 2025, citing that some tailwinds are losing momentum.
