Advertisement

Steve Eisman: I'll short Britain if Corbyn gets in

Steve Eisman has a basket of about 50 stocks he would short if Britain ends up with a "Trotskyite" prime minister.

921_MW_P16_strategy_side_guru
Steve Eisman,managing director, Neuberger Berman Group

Steve Eisman made his name as one of the few investors to both predict and profit from the US subprime mortgage crisis. He featured in Michael Lewis's best-selling book on the crisis, The Big Short, and was played by actor Steve Carell (under the pseudonym Mark Baum) in the film adaptation. So it's a little concerning that he has placed his latest big bet against the UK economy.

Advertisement - Article continues below

Eisman is currently shorting two British banks (ie he is betting on their share prices falling for more on that, see our financial glossary). That's because he has two major concerns about the UK economy, he tells Bloomberg. First, there's Brexit. He is worried the UK will negotiate an exit from the European Union, but that parliament will then reject the deal. However, there's another political issue that worries him a lot more.

"I'm shorting two stocks in the UK, but I've got a screen of about 50, and I might short all 50 if I think Jeremy Corbyn is going to be prime minister. Corbyn's a Trotskyite... you don't want to be invested in the UK if a Trotskyite is prime minister." Eisman didn't name the bank stocks that he's shorting, although Bloomberg points out that the most-shorted banks listed in the UK are currently Metro Bank and CYBG. The newswire also acknowledges that Eisman's previous bets against banks have not necessarily matched his subprime performance about a year ago, Eisman suggested shorting US bank Wells Fargo which was embroiled in a mis-selling scandal. Since then the shares "have been little changed."

Advertisement
Advertisement

Recommended

Brexit begins: what do the UK and the EU want from a trade deal?
Brexit

Brexit begins: what do the UK and the EU want from a trade deal?

With Brexit now done, the trade talks can begin. But who wants what from a UK/EU trade deal, and how likely are they to get it?
3 Feb 2020
The British equity market is shrinking
Stockmarkets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Another Brexit delay – so what happens now?
Economy

Another Brexit delay – so what happens now?

Last week’s excitement over a Brexit deal getting done proved to be premature. John Stepek looks at where we are now, and what it means for your money…
21 Oct 2019
Beyond the Brexit talk, the British economy isn’t doing too badly
Economy

Beyond the Brexit talk, the British economy isn’t doing too badly

The political Brexit pantomime aside, Britain is in pretty good shape. With near-record employment, strong wage growth and modest inflation, there is …
17 Oct 2019

Most Popular

Don’t despair on dividends – these companies could be set to bring them back
Income investing

Don’t despair on dividends – these companies could be set to bring them back

The value of dividends paid out by UK stocks has plummeted this year as companies “rebase” their payment policies. But things could soon start to look…
6 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”
Investment strategy

The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”

Merryn talks to economist and author Andrew J Scott and discusses how we can profit from the "longevity dividend" as we live longer; why we need to re…
6 Aug 2020