By Jonathan Roth
The man formerly responsible for running one of America’s largest endowment funds, who’s now in the top job at a multi-billion-dollar hedge fund, believes the United States is in trouble.
“(America) could be heading down a really dangerous path,” declared Mark Yusko—the founder, CEO, and CIO at Morgan Creek Capital Management—during an interview taped this week for RiskHedge Video.
Mr. Yusko shared his belief that there are many startling similarities between President Trump’s policies and those of another President viewed unfavorably by history—Herbert Hoover.
“I just don’t think people study enough history, and they don’t look far enough back,” explained Mr. Yusko. “As Churchill said, ‘The further back we look, the further forward we can see.’ You can’t look five years back or 10 years back or even 20 years back. You’ve got to look whole multiple generations back—70, 80, 100 hundred years—to see what we could be up against.”
Set to release a letter to investors titled, Welcome to Hooverville, Mr. Yusko sees trouble ahead for many areas of US economic stability, including the dollar.
“I already think we’re on the slope down with the dollar. I think we’ve been declining since 1971,” said Mr. Yusko. “I think that we’ve had these temporary spikes, but each time they’re lower highs. I think we’re heading back down, and the dollar is going to become less and less important.”
Questioned about the many Wall Street faces dotting President Trump’s cabinet and whether they’re in agreement with the President’s economic ideas, Mr. Yusko pulled no punches. “Do they have a sense of duty and obligation? Do they want to give back to their country? Or, is it more cynically that they get a great tax deal and they don’t have to pay taxes on all these accumulated gains? I might lean more toward the latter than the former in some of the cases, in some of the appointments.”
Mr. Yusko’s Welcome to Hooverville letter will be made available on this website upon its release. Watch the full interview with Mark Yusko above.