The founder of Green Light Capital turned to European industrial stocks to warn of a US tech bubble

The Zhitong Finance App learned that David Einhorn, founder of Greenlight Capital Inc. (Greenlight Capital Inc.), is currently optimistic about the European market, particularly favoring the industrial sector in the region. He believes that factors such as government stimulus measures, falling global energy prices, and the possibility of reaching a peace agreement in Ukraine will be beneficial.

In an interview at the Sohn conference in Montreal on Wednesday, Einhorn also said that he is cautious about America's ability to withstand a trade war with China because “no one seems to be able to accept that the shelves are empty.”

But the precision of China's technology, cheaper labor, and the fact that it has been preparing for an economic conflict with the US over a long period of time mean that America should “be prepared to be hit hard.”

He has a neutral attitude towards US stocks, believing that they are “not undervalued” but “very, very expensive.” He added that unprofitable tech companies are unlikely to meet their valuation expectations.

Einhorn pointed out that European companies have fallen into a cyclical slump due to the war in Ukraine and soaring energy costs. However, he believes that a possible peace agreement in Ukraine “will bring about extensive reconstruction work and create opportunities for European industry”.

Belgian soda ash producer Solvay SA (Solvay SA)'s stock price hit a record high last month after Einhorn disclosed its investment in the company.

The influential hedge fund manager is no longer publicly talking about shorting targets. He would prefer to see the stock price fall “for its own reasons” rather than because he claims it is overvalued.

“I thought providing information to the market would create a lot of value,” but “I don't think the market wants to listen to any information at all,” he said, “so there's no point in sharing short targets.”