When speaking at the recent Grant’s Spring Conference at the Plaza in New York, David Einhorn, president of Greenlight Capital presented two ideas -- one long and one short.
He preceded these recommendations with some commentary on US interest rates stating that:
“I remain of the view that higher rates will surprise by improving the economy on Main Street even though it is quite possible they would create some turbulence on Wall Street, as most equities are now highly priced, and a select group are in a bubble.”
He continued:
“Low interest rates make workers save more as they can’t anticipate earning a safe income on savings. They also make retirees spend less, as they have less current and future income...both...
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