David Einhorn says investors should be 'bearish on stocks and bullish on inflation'

Greenlight Capital's David Einhorn said Wednesday he's keeping his antagonistic stance connected the banal marketplace arsenic ostentation and involvement rates could sprout higher.

"I deliberation we should beryllium bearish connected stocks and bullish connected inflation," Einhorn said connected CNBC's "Halftime Report." "I deliberation we're successful a argumentation now, which is astir apt beauteous bully for Main Street, but it's going to beryllium hard and progressively hard for fiscal assets."

The prima hedge money manager believes the Federal Reserve could person much enactment to bash to combat stubborn terms pressures, lifting involvement rates adjacent higher than statement expectations. The cardinal slope has taken involvement rates to a people scope of 4.5%-4.75%, the highest since October 2007.

"I deliberation that some long- and short-term rates are headed higher and astir apt higher than what radical are expecting," Einhorn said.

Treasury yields person surged implicit the past twelvemonth connected the backmost of a bid complaint hikes. The benchmark 10-year Treasury output connected Wednesday topped 4% for the archetypal clip since November. Shorter-term rates surged adjacent higher, with 6-month and 1-year yields topping 5% for the archetypal clip since 2007. Bond prices and yields determination inversely.

"The Fed does privation banal prices lower. They've made that clear," Einhorn said. "I deliberation it would beryllium amended if they cared little astir the banal marketplace successful either direction."

Einhorn conscionable scored "an exceptionally bully year" with a 36.6% return successful 2022, acknowledgment successful portion to his abbreviated presumption successful a slew of innovative exertion stocks similar those touted by maturation capitalist Cathie Wood.

The hedge money manager said successful a caller capitalist missive that 2022 successful galore ways was his champion twelvemonth ever and the play was astir comparable to 2001, the twelvemonth aft the past tech bubble popped. He besides revealed that helium is inactive abbreviated immoderate "bubble" names.

The wide followed capitalist said his hedge money is nett agelong by a comparatively tiny magnitude and helium has a beardown condemnation successful the worth picks successful his portfolio.

"I person a beauteous blimpish presumption towards which mode the wide marketplace would go, but I'm precise excited astir a fig of the positions successful my agelong portfolio due to the fact that they're conscionable ridiculously inexpensive and returning tons of capital," Einhorn said.

At the extremity of 2022, Greenlight's biggest agelong presumption included Green Brick Partners, Brighthouse Financial and Consol Energy. He antecedently said his hedge fund's important winners successful 2022 included Atlas Air Worldwide, Consol Energy, Teck Resources and merger arb play Twitter.