<\/p>\n
Investor Steve Eisman, who took short positions against the housing market leading up to the 2008 crisis, is sounding the alarm over an event that could trigger a collapse in the stock market.<\/p>\n
In a new video on his own YouTube channel, Eisman says that he continues to be long-term bullish on the US stock market, noting that the US economy is in the best position to witness growth and innovation in decades.<\/p>\n
But Eisman cautions that escalating geopolitical tensions could obliterate the US economy\u2019s growth potential, sparking a big stock market sell-off.<\/p>\n
\u201cWe\u2019ve been in a bull market pretty much for the last 10 years with some fits and starts. And so buy the dip has become almost a religion. It\u2019s a religion that right now I largely subscribe to because I am of the view\u2026 that the US economy is more dynamic than it\u2019s ever been in my lifetime. So long term, I am very bullish.\u00a0<\/em><\/p>\n However, the one thing that I worry about is the potential trade war. And here, it\u2019s in no one\u2019s interest for there to be a trade war. But just like in World War I, it was in no one\u2019s interest for there to be a World War I. But because of the reciprocal treaties that countries had, they fell into it.\u00a0<\/em><\/p>\n I think it\u2019s still possible that there\u2019s a trade war. I don\u2019t know how to handicap it. That is really the only risk in the market.\u00a0<\/em><\/p>\n As long as there\u2019s no trade war, I\u2019d buy every single dip. If there is a trade war, however, you would see a very big correction.\u201d\u00a0<\/em><\/p>\n As of Friday\u2019s close, the S&P 500 is trading at a new all-time high of 6,173 points.<\/p>\n