After watching the ascent of GOP hopeful Herman Cain, I couldn’t help but think that his name had graced the pages of this blog before, and a simple search turned up this story from 2006, in which it becomes clear that, if Cain is elected to the nation’s top political post next year, hopefully he’ll do a better job running the country than he did picking stocks, as the housing bubble was about to burst. The 2006 article, in its entirety, follows.
Supply Sider Investment Advice
June 11, 2006
There’s been a little yellow sticky note at the top of my computer monitor since the end of January of this year. It says, “1/21 – Cavuto – Herman Cain – BZH – $75″, in reference to a recommendation made by Herman Cain on the Fox business news show Cavuto on Business to buy Beazer Homes at $75 about five months ago.
It’s been sitting there for a while now, and it wasn’t really clear what should be done with it aside from maybe adding it to the collection of prognostications that are kept in a text file on my computer desktop. But that text file contains predictions from people whose opinions are respected here, so Herman’s little stock tip really didn’t fit neatly into that category.
So, when John Rutledge started talking about commodities the other day on Larry Kudlow’s show (a program that is viewed here about once every few weeks, and then only to listen to Barry Ritholtz and Herb Greenberg unsuccessfully try to beat some sense into Larry’s skull on Thursday afternoons) the idea was hatched to combine these two bits of supply-sider clairvoyance into a short little Sunday post to demonstrate the dangers that lie in wait for anyone taking investment advice from these types.
First, what followed Herman’s prediction:
[Continue reading this article at Seeking Alpha.]