Written by: Brooke Bouma Kohlsdorf
Edited by: Dave Price
Steve Eisman isn’t afraid to offer opinions that go against the grain. You could say it is the long-time investor’s contrarian outlook that helped him rise to fame and build a fortune after predicting the 2008 financial crisis. He was even featured in the Michael Lewis book, ”The Big Short” (Steve Carell played his character in the subsequent movie).
DISTRACTION VIDEO: Here is the “I Smell Money” scene in the “The Big Short” with Steve Carell and Ryan Gosling.
It is also Eisman’s understanding of the economy that made him a highly anticipated speaker at the Land Investment Expo in Des Moines, Iowa, where he covered everything from the national deficit to AI and shared why he’s so optimistic about our country’s future.
Steve Eisman Bio:
Oppenheimer & Co. – Managing Director, Senior Investment Bank/Asset Management and Speciality Finance Analyst
Chilton Investment Co. -- Managing Director and Senior Financial Services Analyst
FrontPoint Financial Services Fund /FrontPoint Financial Horizons Fund – Partner, Senior Portfolio Manager
Emrys Partners -- Founder, Portfolio Manager
Neuberger Berman – Managing Director, Portfolio Manager for the Eisman Group
Eisman sat on stage during the Land Investment Expo in Des Moines, Iowa, with The Land Report Editor Eric O’Keefe.
He shared his thoughts on a variety of issues:
The Federal Debt Doesn’t Matter
“I would say the American economy is more dynamic today than it’s ever been in its history.”
Eisman said that he doesn’t share the same view as people who worry that the federal debt will eventually doom the American economy.
RELATED: This website by the Bipartisan Policy Center tracks the U.S. federal debt and explains the causes of it.
Eisman explained why he doesn’t think that the American economic system will ever break.
“I think the reason why is that to really break us, you have to break the dollar. The reason that doesn’t happen is that not only are we the reserve currency of the world, but the entire financial system of planet earth functions on treasuries. You would need a replacement for treasuries, and there is no replacement for treasuries.”
Technology = Economic Strength
Eisman also thinks the strength of our technology sector is another reason why our economy is doing so well and continues to make us “the envy of the world.”
“We are 60 percent bigger than the EU’s Gross Domestic Product (GDP). Europe is sclerotic.”
He added that technology makes up about 40% of the Standard & Poor’s 500 (S & P) which sets us apart. “We have this unbelievable tech sector that doesn’t exist anywhere else in the world.”
He said he personally invests only in U.S. stocks.
Infrastructure’s Future: Onshoring
Eisman explained how COVID-19 exposed our reliance on other countries for manufactured goods, a dependency that was 30 years in the making.
“It was incredibly efficient and very cheap. But it turns out it was also very brittle and couldn’t survive the impact of a pandemic.”
He said companies don’t want future supply chain issues, which is why we are seeing more manufacturing happening in the United States. “You are seeing the early stages of onshoring, and President Trump is going to do various things to try to accelerate it.”
Energy Grid
The U.S. energy grid, Eisman said, will grow to accommodate onshoring and artificial intelligence, which will also be good for the economy.
In addition, he thinks all the other infrastructure that comes with more manufacturing, like buildings and roads, will be a big story.
“I mean, it’s a long tail that’s a very big thing for the United States for several years.”
His Investments
When asked what investments he is staying away from right now, he said there are two things that come to mind.
1. Solar: Eisman wants more clarification from the Trump Administration on what it plans to do with solar energy.
2. Consumer staples: He joked that he doesn’t like those investments because they bore him to tears.
“So, I really focus mostly on AI (artificial intelligence) tech. I focus on infrastructure, and I still do things with financials just because I know it so well.”
Thoughts on AI
Eisman said we are in the very early stages of AI. Many companies are still not able to do anything yet with AI because they lack organization in their data.
But he believes Apple will continue to be a strong player in the foundation of AI because the apps that consumers use will go through the tech giant.
Interest Rates
He doesn’t know what will happen with interest rates but thinks the economy is still in great shape except for the housing market. Housing is in a tough position because so many existing homeowners have mortgages with 3% interest rates after refinancing when borrowing rates were much lower. This is motivating them to stay put instead of buying new homes and taking on loans with rates around 7%.
RELATED: This New York Post story shows the coldest housing market report (from December) in two years.
Storytelling
Eisman said that he believes in the power of using a story to bring investors to the table. It also helps companies weather tough times.
“In good times, and I think these are good times, it’s story time. Investors like stories. They like to own something they believe in.”
“You know, when you invest in a company that has a great story…if they have a quarter that is slightly disappointing or when stocks go down for a day, no big deal. When it’s got no story, and you missed the quarter, it’s unforgiveness.”
The Three Best Stories Right Now
Eisman said there are three great investment stories right now.
AI and technology related to it
Infrastructure
Crypto Currency
“I believe in the first two, and I don’t believe in the third.”
Why Eisman Doesn’t Like Crypto
The main reason he doesn’t invest in Crypto Currency is that its “story” doesn’t make sense to him. Eisman says crypto supporters contend it is a hedge against the debasement of traditional currency. But he thinks it doesn’t do what it claims to do.
“I can’t buy something that acts against its own thesis, despite the fact that it has a great story.”
What He Reads Every Day
Eisman said that there is a genre that he does not read: business books.
In the morning, he starts with the New York Times, Wall Street Journal, Jerusalem Post, Times of Isreal, New York Post, and various other publications.
He also reads a lot of fantasy novels and history books, specifically Roman history.
(Fun fact about Eisman: He owns 11,000 volumes of digital comic books.)
Marvel Movie Critique
Eisman has a longtime love and fascination with comics but is frustrated with recent Marvel Comics movies.
He thinks the movies are losing their focus and becoming increasingly hard to watch.
“And so, there’s no story. The story was over, and they have not been able to find a replacement story.”
“And then the last two Avenger movies ended, and Iron Man got killed. Captain America is now 90 years old. And this is the part that really upsets me: Thor, one of my absolute favorite characters as a kid, they’ve made him a comedic buffoon. I find that deeply upsetting.”
Note: Steve Eisman was a featured speaker at the 18th Annual Land Investment Expo in Des Moines, Iowa. Get an early look at the 2026 Land Investment Expo here.
