Why Oh Why Can't We Have a Better Press Corps? (National Review Edition)
Larry Kudlow writes:
Kudlow's Money Politic$ on National Review Online: Mustard Seeds [Larry Kudlow]: Many Wall Street analysts are forecasting a steep 3 to 4 percent Q4 contraction. But they are not factoring in the roughly $200 billion dollar drop in consumer energy expenses that is accruing from the collapse in oil and gasoline prices. This huge energy tax cut effect will be a big booster for consumers and businesses. Not only will it benefit consumer purchasing power, it will also improve the profits picture, and as a result, the stock market...
But the stock market is a forward-looking animal. Unless you think investors are really stupid, the effect of falling oil prices on profits and future dividends has already been incorporated into stock prices--it has just been overwhelmed by the bad news about the financial crisis.
At some point predictions that the stock market is about to rise are going to be true. But if they are true now, it is not because "Wall Street analysts are forecasting a steep 3 to 4 percent Q4 contraction. But they are not factoring in the roughly $200 billion dollar drop in consumer energy expenses that is accruing..."
