On the eve of a big drop on Friday, David Einhorn, who became famous for profiting during the Lehman crisis, stated that the structure of the U.S. stock market is collapsing.

David Einhorn stated that due to the rise of passive investing and investors placing more importance on price rather than value, overvalued Stocks become even more overvalued and undervalued Stocks become even more undervalued. This phenomenon distorts market value and plants significant hidden risks.

wallstreetcn14:35

"Returning to the pre-liberation era overnight"! The U.S. stock market has erased its gains after the election, and the employment report worries Wall Street about a "double loss" in stocks and bonds.

Measured by the performance of the largest Global ETF tracking the S&P and long-term U.S. Treasury bonds, the total returns of U.S. stocks and bonds have been negative for five consecutive weeks, marking the longest streak of negative returns since September 2023. Friday's non-farm payroll report raised concerns among traders about the Federal Reserve closing the door on this round of easing.

wallstreetcn10:38

Traders Push Back Rate-cut Expectations for 2025 After Hot December Jobs Report

Seeking AlphaJan 10 23:11

December US Nonfarm Payrolls Rise More Than Expected, Unemployment Rate Slows

MT NewswiresJan 10 21:41

The biggest obstacle to the Federal Reserve's interest rate cuts in 2025: inflation and Trump.

The anti-inflation process has stagnated, and meanwhile, under Republican control, several Congressional agendas will further increase inflation.

Baron ChineseJan 10 12:08

Goldman Sachs strategists warn: The pricing of U.S. stocks is at a "perfect level" and is likely to experience a pullback.

Goldman Sachs' Chief Global Equity Strategist Peter Oppenheimer warned that as investors digest the uncertainty surrounding rising Bond yields, overvaluations, and further interest rate cuts, the current "perfect" earnings market environment may be difficult to sustain.

Zhitong FinanceJan 10 07:58