themarketNZZ/Gregor Mast interview of Jim Chanos/2-11-2023
“[T]here are three expectations priced into futures markets I would like to point to. First, the market expects S&P 500 earnings to grow by 12% this year. Second, inflation breakevens imply that inflation rates are headed down to 2-3% by the end of the year. And third, the forward curve on short term rates is still predicting a cut in rates in the second half of 2023. I believe there is a chance none of those three things will happen, so you could get disappointment.”
USAGOLD note: Wall Street’s biggest short seller is short specific stocks, but he has reservations about the market as a whole now trading 21x trailing earnings. “Seniment,” he says, “still seems pretty frothy to me.”
