The following posting prompted our thoughts on when we’ve heard this before:
We distinctly remember seeing this same claim, “Einhorn says 'investors' simply don't care about valuation anymore, it's all passive flows and algos, investing is an anachronism” in the 1990s. That prompted us to look up what was said at the time, leading to the following commentary.
The backdrop of the record inflows was against nearly dire economic data caused the bears to wonder (as opposed to the most popular bears of today hoping for a crash) what would happen in the next bear market.
Nothing that Einhorn has said is new and only gains traction due the nature of communication today. Einhorn seems to forget that the market can do anything.
