Kevin O'Leary Praises Kamala Harris and Elon Musk, Discusses Economic Impact of Inflation Reduction Act

Kevin O'Leary Calls Kamala Harris' 'Show-Me' Story, Elon Musk 'Modern Day Bruce Wayne:' 'Shark Tank' Star Discusses Inflation And Market Opportunity

Recent sell-off is due to pricey nature of eight or nine tech stocks, which trade at over 40x vis-a-vis market, which trades at 30x, he says Kevin O'Leary, chairman of O'Leary Ventures, on Tuesday shared insights into a host of issues, including inflation and his outlook on the economy and the election. He also weighed in with his thoughts on Tesla CEO Elon Musk. Sticky Inflation: The producer price inflation report for July showed wholesale prices cooling more than expected but O'Leary said the softening isn't enough. In an interview with Fox News, he noted that the market is now deliberating whether there would be a 25-basis-point or 50-basis-point cut in September. The bond rates, specifically the two- and ten-year show that inflation is "very, very, very sticky," he said. The Canadian business sees the Fed facing a tall order as its mandate is 2%. "So, do they take the brakes off now and just start cutting right now? I think it should be, I'm kind of in the maybe 25 basis point and wait and see," he said, adding that the report, though interesting, suggests there's a lot of inflation in the system. See Also: Best Inflation Stocks Market Outlook: Despite the extended rally seen since the stocks emerged out of a bear market in late 2022, O'Leary thinks there is an opportunity. It's not the Fed that ultimately drives the market but it is earnings that move the market, he said. "So people are trying to guess what is the story on earnings," he added. O'Leary also noted that on the economic front, although there is some weakness, consumer data has remained resilient. Investors are also encouraged by the promise of AI productivity in the next two years, he said. The recent sell-off, according to O'Leary, is due to the pricey nature of eight or nine tech stocks, which trade at over 40 times vis-a-vis the market, which trades at 30 times. "when those things go down, it pulls down the full S&P 500," he said. He also pointed to a lack of policy, which is creating uncertainty. "Most of us make the assumption that [Kamala] Harris and her team will give us platform policy after the conventions," he said. "So, we're waiting for that; if she doesn't that'll get a little crazy because there is going to be a lot more volatility in the market." While answering a question on whether Harris is a changed person now from 2020, O'Leary said, he is a "show-me person." "If you've really changed, if you're really going to the middle with policy, show me, get in front of a reporter let them ask you some questions and give your platform out," he said. He also clarified that he was bipartisan when it comes to investing. "I'll invest with Democrats or Republicans but I got to know the platform, I got to know the policy so she's really going to move to the middle on things like fracking and energy and border and interest rates and foreign affairs and all that stuff," he said. On Musk: O'Leary said he is a "huge fan of Elon Musk." "I think that guy is a modern-day Bruce Wayne and if he got involved with government it would be a good thing for everybody in America," he said, adding that "the guy is no BS guy." The Tesla CEO is very transparent, and he really knows what he is doing, O'Leary said. He also lauded Musk for his execution skills. "You may not like him, you may not like his communication styles but look at when he's accomplished," he said. "If we could get more Elon Musk in the government this country would not be in the situation that it is in," he added. Musk on Tuesday batted for a government 'efficiency' committee and expressed interest in joining such a committee in a potential Trump administration. "A tremendous amount of growth and opportunity would be created by deregulation and reduction of wasteful government spending," he said on X. Read Next: Kevin O'Leary Says You Can Survive On $500,000 And 'Do Nothing Else To Make Money' Photo courtesy: Flickr Market News and Data brought to you by Benzinga APIs

Harris 'Was The Deciding Vote For The Inflation Reduction Act,' Says Kevin O'Leary. 'That's The Reason We Have Inflation'

In recent comments on Fox News, Kevin O'Leary, a well-known entrepreneur and investor, didn't hold back on his opinions about Vice President Kamala Harris's role in the current economic situation. O'Leary pointed to Harris as a key figure in passing the Inflation Reduction Act, arguing that her tiebreaking vote in the Senate directly resulted in the inflation the country is facing today. Don't Miss: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy. A billion-dollar investment strategy with minimums as low as $10 -- you can become part of the next big real estate boom today. O'Leary said he's worried about the upcoming political landscape, especially the challenges Harris might face. "I'd argue she was the deciding vote for the Inflation Reduction Act. That's the reason we have inflation," O'Leary said during his interview. Trending: Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York and become the new financial capital of the US. Investing in its booming real estate market has never been more accessible. He suggested that former President Donald Trump would likely focus on this issue: "Trump will pin that on her. Going to pin the border on her, on executional skills. Going to pin defunding the police. Going to pin no fracking on energy." O'Leary suggested that Harris might have difficulty connecting with moderate voters, who he believes represent most of the country. He mentioned that people are watching to see how she will deal with key policy issues but questioned whether she can handle them well. "These are tough, tough things that you have to recuse yourself from somehow in defining a new role for America to get to the center," he noted. Trending: Don't miss the real AI boom - here's how to use just $10 to invest in high growth private tech companies. O'Leary's comments highlight the ongoing debate about whether the Inflation Reduction Act works as intended. The Act was supposed to help with climate change, health care costs, and taxes on big companies. However, critics like O'Leary believe it has actually made inflation worse. In a separate interview on Fox News, O'Leary discussed Minnesota's economic policies under Potential Democratic VP and still-Gov. Tim Walz and expressed concerns about the state's economic performance. Trending: This startup's stem cell research aims to reduce reliance on animal testing -- Sees 55% uptick in YTD sales and only costs $3 per share for early investors. O'Leary pointed out that Minnesota has one of the highest state taxes at 9.8% and has introduced a super tax on investments over a million dollars. "I have the numbers now, and I've got to tell you, I don't like what I see, and I'm trying to be bipartisan here, but it's one of the eight states where capital is fleeing, and people are fleeing, and jobs are fleeing." Nevertheless, many supporters believe the Act will bring positive changes regardless of what critics like Kevin O'Leary say. They point to studies showing that shifting toward renewable energy can reduce long-term energy costs and make the U.S. less dependent on fossil fuels, which could lead to greater economic stability. Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% - 9% make earning passive income easier than ever. Others also don't see Walz's Minnesota policies as devastating but as a positive step forward for the State's people. For example, Walz has been praised for expanding health care access and improving education in Minnesota and his policies have also been credited with strengthening social services. We've also yet to see former President Donald Trump push back on any Harris or Walz policies as he is more focused on the "culture war" talking points. Read Next: The number of '401(k)' Millionaires is up 43% from last year -- Here are three ways to join the club. This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10. Market News and Data brought to you by Benzinga APIs