market folly

Market strategist Jeff Saut of Raymond James has put out his latest piece entitled, "Schadenfreude."  In it, he talks about his recent meeting with Steve Eisman.

Here's what Eisman is thinking these days, according to Saut:  "Steve concluded that Europe is currently sick, the U.S. is likely destined for slow growth because there is not a big enough mortgage refi pipeline to boost the economy, and that Italy is in big trouble.  Steve said to bea short seller you need to embrace 'Schadenfreude.'"

Eisman, of course, was famously profiled in the book The Big Short that subsequently was turned into a movie where he was played by Steve Carrell.

Eisman also walked Saut through the financial crisis, noting that for a crisis like that to happen, you need 3 things: too much leverage, a big asset class that blows up, and then large institutions holding most of the asset class that blows up.

Embedded below is Jeff Saut's latest market commentary, Schadenfreude:



You can view Saut's previous market commentary here.