Douglas Kass Open Letter To Larry Kudlow
Douglas Kass, a hedge fund manager, popular commentator on markets, and a personal friend of Director of National Economic Council Larry Kudlow, has penned an open letter to Mr. Kudlow expressing his dismay at the over-hyping of the state of the economy from Kudlow and Trump.
This is a good read and he argues in a convincing manner unlike the talking heads on TV that you see shouting at each other. You can read the complete letter here.
He cites many salient points which contradict the hype. For example:
Other key points he makes:
S&P 500 companies are issuing negative earnings guidance at the highest rate in more than two years.
Tax cuts and government spending are borrowing from future economic growth.
Many cyclically sensitive companies report rising costs and supply chain problems.
Harsh trade talk is impairing global trade, to the point that IMF downgraded 2018-2019 world growth projections.
Recent market weakness is likely a warning of “Peak Global Growth.”
I think it is important that we, as citizens, get enough information on our own that we can make informed judgments about what is real and what is propaganda. I encourage you to read and digest this letter.