David Einhorn Raises Inflation Forecasts Post-Election

David Einhorn, president of Greenlight Capital, expressed concerns about rising inflation under a potential second term for Donald Trump, predicting rates between 3.5% and 4.5%. He attributes this anticipated inflation to Trump's proposed tax cuts and immigration policies that could increase labor costs. During the CNBC Delivering Alpha conference, Einhorn emphasized that while he does not foresee inflation returning to the 7%-9% range seen in previous decades, he expects the economic policies could lead to significant inflationary pressures. Despite these inflation concerns, Einhorn remains optimistic about the stock market, suggesting there are still potential bargains available. He has also taken steps to protect his hedge fund portfolio against inflation by adding relevant positions. Overall, Einhorn believes the economy will continue to grow, albeit with challenges ahead.