Greenlight Capital's David Einhorn, who is crushing the market with double-digit returns this year, is selling stocks as the Federal Reserve continues to deflate the market with aggressive rate hikes.
However, higher interest rates also discourage investments and in turn crunch supply, which is most evident in the housing market.
"The most glaring area might be in housing, where higher rates lead to reduced supply despite widespread shortage," Einhorn said.
That compares with a 23.9% decline for the S & P 500 during the same period as the benchmark tumbled into a bear market.
Further, high short-term interest rates provide competition for gold," Einhorn said.