Greenlight Capital's David Einhorn on Inflation and Investments

By Carolina Mandl
NEW YORK (Reuters) – Greenlight Capital President David Einhorn stated on Wednesday that he has incorporated some inflationary protection into his hedge fund portfolio, anticipating that inflation will rise under President-elect Donald Trump.

Speaking at the CNBC Delivering Alpha conference, Einhorn projected inflation rates between 3.5% and 4.5% for the upcoming year. According to the Labor Department's Bureau of Labor Statistics, the consumer price index increased by 2.6% in the 12 months leading up to September.

Einhorn observed that government spending is expected to escalate under the new administration but expressed uncertainty about how Trump's economic team will manage this increase.

Despite these concerns, Einhorn maintained a positive outlook on stocks, asserting that the U.S. economy is likely to continue its growth trajectory.

He noted the potential to discover market bargains, including a long position in CNH Industrial (NYSE:CNH), which has declined by 17.5% year-to-date, as he anticipates a rise in its share price.