‘Big Short’ famed investor Steve Eisman who is a senior portfolio manager at Neuberger Berman says that he has dropped his forecast after President Joe Biden drops out of the 2024 presidential elections. Eisman has previously predicted that former President Donald Trump would win the race.

What Happened: Eisman who successfully bet against subprime mortgages before the financial crisis of 2008 said, “I withdraw the prediction,” and asserted that he had “no idea,” who would win the presidential election after Vice President Kamala Harris became the Democratic presidential candidate. Eisman said this in an interview with Bloomberg Television.

Eisman made a case that if Democrats win in The White House and Congress “the market is going straight down,” however if the Vice President wins and Democrats do not sweep, the market will be fine.

In contrast, Eisman forecasted that if Trump wins the race, the stocks will surge in anticipation of tax cuts.

See Also: Warren Buffett’s Daughter Asked Him For A $41,000 Loan To Remodel Her Kitchen, But The Billionaire Told Her: ‘Go To The Bank Like Everyone Else’

Why It Matters: Investors are currently grappling with U.S. economic uncertainty, shifts in Federal Reserve policy, and the upcoming presidential election—all contributing to a heightened demand for portfolio hedging and diversification.

Election forecaster and historian Allan Lichtman made his final prediction last week on whether Trump or Harris will win the 2024 presidential election. Lichtman’s 13-key point system sees Harris win eight, Trump win three, and two still undecided.

A new Morning Consult poll of likely voters shows Harris’ lead growing after the presidential debate.

However, a CNBC survey revealed that 67% of investors believe that former President Trump would be more favorable for the stock market. Historically, the S&P 500 and Nasdaq performed strongly during his tenure.

Trump has also claimed that if Harris wins the election, the market could face a 1929-like crash.

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