Mike Segar/Reuters
- David Einhorn expects stubborn inflation and the Fed to only cut interest rates next year.
- The Greenlight Capital boss says he's concerned about stocks and has bought index hedges.
- If inflation sees a resurgence and rates go higher, that could threaten the current bull market, he says.
Stocks have soared in recent months, as investors wager the inflation threat is over, the Federal Reserve will soon reverse its hikes to interest rates, and the US economy will escape a recession.
They may be celebrating too soon, hedge fund boss David Einhorn warned in his quarterly letter to investors this week.