On Wednesday, famed money manager Ken Fisher, who has managed money for nearly 40 years and now has $35 billion of assets under management, went on Tech Ticker to announce the ultimate contrarian view that the U.S. doesn’t have too much debt–it has too little.
We were startled enough to admit that it made us think Fisher might be nuts. Today famed economic blogger Mike Shedlock (aka, “Mish”) asks us to consider whether Fisher is genuinely nuts or just talking his book, hoping a new wave of debt will create a bull market for stocks.
Whether or not Fisher is nuts boils down to how much he is talking his book. Let’s put this in perspective. When you are managing $35 billion, you can never say sell. Think about what it would do to stock prices.
Thus Ken Fisher will always be perpetually bullish. Moreover, it does not matter to Fisher whether stocks are going up in real (inflation adjusted) terms or not, he just wants them to go up. He does not care how or why.
When Fisher says “We need more debt” it’s possible he means “Ken Fisher for the benefit of Ken Fisher investments needs people to take on more debt”
Certainly the biggest bull markets in any country in nominal terms comes in periods where debt growth is exponential. So it’s possible Fisher is simply talking his book.
Ulimately, Mish concludes that Fisher is not cynically talking his book. He really believes we need more nuts. He writes:
However, I happen to believe that Fisher believes the nonsense he is spouting. If so, I agree with Blodget: “Ken Fisher Is Nuts”.