‘Big Short’ Investor Reveals A Surprising Prediction

back on CNBC and Bloomberg last week Steve Eisman spoke about the economy, the housing market, fiscal policy, and most interestingly, his bet for the artificial intelligence boom.

Not Nvidia or Microsoft, in fact it's a stock you probably wouldn't think to associate with AI.

What do you think about Steve Eisman's stock market and economic predictions?

TIMESTAMPS
INTRO 0:00
NOT A TIMEBOMB 0:56
HOUSING MARKET 3:13
'OY THE DEFICIT' 4:48
GASOLINE ON THE MARKET 8:28
STEVE'S AI STOCK 9:42
DEVIL'S ADVOCATE 11:34

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[HamishHodder]

here before the bots ruin the comment section 🥲

[veniceblackwood]

You folks do not know what inflation is. Prices never go down again. Prices may stabilize one day, and that's how inflation works around the world.

[TheQutzalify]

The conclusion is not true. I'm an AI research engineer, I work on multimodal LLMs for search with RAG and other fun stuff. I also do applications of robotic foundational models.
Running any big model in the cloud is much much faster than locally. To be able to run a big LLM locally you need a ton of compute, like 8xA100 easily and that's not even enough for the biggest models.

I'm 100% convinced that we will NOT see an upgrade in end-user devices. Everything will be in the cloud (as it already is). The only people still running local models will be privacy-nerds (I see nothing wrong with that btw) and companies with security and privacy imperatives. There's no way your phone will ever be able to run big LLM or audio/image/video diffusion models locally even heavily quantized and optimized for inference.

Our phones are already glorified end terminals and do very very little compute locally. The only exception is phone cameras that do image cleaning, stabilization, enhancing, etc... but that's it.

[PCMenten]

When your mortgage rate is lower than inflation, you hold tight because you’re making money without risk.

[bomaniigloo]

What they tell the cattle and do for themselves are 2 completely different things

[seandelaney]

I watched this interview and couldn't understand his take on CC delinquencies. Thanks for re-airing it with real data. Not sure whey he got not push back on this?

[seanjournot]

machine learning requires massive resources to train but not nearly as much to run after training is complete. A large hardware upgrade isn't really required to run machine learning apps locally on desktops, laptops and phones. For instance; a HPC may be needed to train a model that adds bunny ears to live video of people but the trained model would be executable on a phone.

[CeeJay]

I’m sure there are many people who need to sell their houses now, due to change in circumstances, higher taxes or HOA fees, higher insurance rates, etc but can’t due to the much higher mortgage rate - but this situation can only last so long and in fact I have seen housing prices decreasing for less desirable properties. If we do see any sort of contraction in the job market more people will sell out of necessity which would drive the market even lower, as folks want to get as much money as possible before the bottom falls out. Also, the savings rate going down is not a bullish sign - it is a sign that many folks are struggling with inflation as their income is not keeping pace with rising prices. Inflation and higher rates take a long time to impact the economy but, when the full impact hits, expect a significant slowdown, which is exactly what is needed to tame inflation.

[supercal]

So are credit card delinquencies up or down? Did you find if he was right about them being down?

[TheSuavest]

Cloud Computing is the real money making machine. Cloud Computing is the vehicle AI will be distributed on because obviously the hardware will likely never be compact enough to run that level of software and code.

[goobda_]

Why have you ditched the Q&A section in your podcast?

[Julio]

Once again thanks for your very informative update. Keep up the good work

[beachbum]

Hamish'., I subscribed a very long time ago (thankfully) ;)

[carolyngreen]

A.I. as with all new technology throughout all of history, is a weapon.

[sheryllynmc]

Good warnings - it won't be like we expect it today!

[wernermesserer]

The wallstreet types have to show a happy face, else they would scare their customers and their fees away.

[jasona]

I find it amazing how split people are on the economy.. the only thing more split is politics

[manvsmachine]

You said his ai stock, but what was it!?

[fwy]

The last bit of words of wisdom! Thanks for sharing mate

[Bogusgal]

If most people bought a house at a 3% mortgage and plan to hold it for 20 years or more, then how can they be "stuck" or "house poor"? Why would they even move if the mortgage fell down to 1%? They would just refinance at the lower rate and stay in the same house.