Morning Commentary
On Wednesday night, I interviewed hedge fund manager Leon Cooperman, who is regarded as one of the greatest ever. We focused on his climb from the South Bronx to the Forbes 400. Much of what made him a success is his daily work schedule that begins at 6:30 each morning, which includes up to 12 hours of work, and dinner with clients and CEOs, ending at 6:30 PM. From there, he heads home and rises up in the mornings to do it all over again. He has been following this routine for the last 40 years.
In this era where self-made men and women are looked down upon or even scorned, the notion that wealth simply drifts from one generation to the next and is never diluted, mishandled, or squandered is folly. Take the story of Vin Baker, one of the scrappiest players on the basketball court during his career in the National Basketball Association. We saw him earn nearly $100 million and now he is training to become a manager at a local Starbucks.
His attitude is great, but his story is heartbreaking as substance abuse derailed his career. The fact is having money doesn’t mean you can keep it. Society will feel sorry for Vin Baker. I even feel sorry for him. However, in the meantime, why don’t we relish someone like Cooperman? When we discussed his spending habits, this is what he told me:
“I’ve got four cars…my newest car I bought is a used Volkswagen Passat and I feel like a rich man. Why am I rich? Because the first two cars are so old that it doesn’t have a Bluetooth; my new car, I bought used, has one and I get in there and give it instructions and it dials automatically.”
I am not sure what the future holds, but I know the past and I know the present, and if we insist on making Leon Cooperman a villain, empower politicians, and ostensibly take his money to spread to others, we are all in a lot of trouble. In fact, we would be heading headfirst into socialism, which continues to fail around the world, but it still sounds attractive when it is dripping off the lips of politicians.
Socialism’s Latest Great Fail
Today in Venezuela, soldiers moved in to seize control of large food distribution centers run by the country’s largest food companies and western businesses, including Pepsi and Nestle. The locations will turn into community housing, just days from an election.
This move will only make food shortages worse.
We’ve already heard stories of toilet paper shortages and food lines so long that a rare growth industry are professional line-waiters who are personal shoppers for the elite rich who brave the countless minutes to purchase basic items.
The moral of the story is the central control of currency and pricing, along with the markets, which are a disaster. I continue to see civil war as the end game there, but what about the notion that such a regime could work in America.
Bernie Sanders just pitched his single-payer health plan yesterday. Surely, a President Hillary government would endeavor to dictate all aspects of the economy. This stuff doesn’t work and it’s destructive since pampered people actually want more stuff until the bank is broken. Afterwards, they are willing to stand in a line for crumbs as long as it is directed from the government.
By the way, I’m hearing Joe Biden is considering getting into the race and I’m thrilled. In fact, I was wondering if there was a way he could run as the VP on both tickets. Life won’t be the same without him.
Today’s Session
Equity futures have gained a little more oomph after the release of the Employment Cost Index, normally a mundane report that used to matter more when Greenspan was running the Fed. It’s critical this morning because the 0.2 reading is the slowest wage growth on record (goes back to 1982). This is important because the Fed cannot hike rates without higher wages.
Already the dollar has gotten softer and bonds are reacting as well.
I know "inflation" is a four-letter word, except when it comes to our paychecks, value of our homes and other assets. The basic foundation of inflation begins with wages which allow too many dollars to chase too few goods and services. Let’s not force the issue right now, but I think we are putting in a bottom to the stealth bear market and that's good news.
But when the idea backdrop for a Fed-less rally happens, it remains inconclusive and sadly, for Main Street, elusive.
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3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
3/12/2024 9:25 AM | ROTATION IN FULL SWING |
3/11/2024 1:41 PM | Sharpening Pencils |
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