Hedgeye CEO Keith McCullough appeared on The Kudlow Report on CNBC tonight. Politics, economics and the stock market were the talk of the night.
Corporate profits are a huge concern, especially for the bulls. Growth is slowing and earnings are under pressure and it’s tough to determine exactly what “cheap” stocks really are. This situation has been driven by Ben Bernanke’s central planning policies. Now with the falling dollar and extension of QE3, we’re dealt with rising costs (food, fuel, etc.) and no real economic gains.
We’re up 16% year-to-date for the stock market and while people might be inclined to chase gains in the market, we know that’s not proper risk management. We’re surprised Mitt Romney hasn’t come out saying he’ll strengthen the US dollar and will get rid of Ben Bernanke to counter Obama’s rhetoric heading into November.
Watch Keith’s full take on the market, inflation expectations and economic growth in the clip we’ve posted.