Research 2.0

Thursday, August 17, 2006

What is Larry Kudlow on?

Being largely out of public equity markets for the summer and coming back from a couple of weeks of family vacation I was caught off guard by Larry Kudlow during his regular show today. He was crowing about the best ever stock market ever! Stocks are at 5 year highs! We are proving again that capitalism is alive and well!

I started wondering what could have happened these last two weeks?! True there was a small technical bounce from oversold conditions but with little volume and no change to the underlying fundamentals. Most stocks seem to be flat to down of late and realistic concerns about the economy and inflation remain unresolved.

It's hard for anyone to be perfectly objective but Larry reminds me of the worst when it comes to repeating sins of the past when "experts" regularly explain with authority that investors will be "just fine" no matter what the data suggest.

We read plenty from far smarter people out there on the macro economy and the markets and can find absolutely no clear agreement or compelling reason to try and outguess them. It's embarrassing to watch someone like Larry Kudlow distort information and offer conclusions with zero research behind them. Thankfully we rarely watch anything on CNBC due to the pain it inflicts.