Dear Scott,

I trust this finds you well. You most likely do not remember me, but we met a few times almost 25 years ago in 2001, when you set up your hedge fund after leaving Soros. I was part of the hedge fund research group at AIG Global together with the late (and great) Bob Discolo, under the fine leadership of David Pinkerton.

You impressed me then as a thoughtful investor, with a keen macro-economic view of the world, combined with a natural talent for picking stocks, based on fundamental research.

I recall that you had a global approach, with New York and London offices from the get-go. Your #1 stock pick was EADS, the maker of Airbus with factories and operations across the EU, and major US airlines as customers.

It is with this in mind that I appeal to your sense of reason and responsibility.

The new tariff policy simply cannot work in its current form and manner of implementation.

There is no doubt that there are steps necessary to bring manufacturing back to the US, and to encourage the reemergence of local industry. I am all for this. But it does not make sense to protect industries that do not exist yet in America.

The global economy is so integrated that even if new factories are set up on US soil, they may still be dependent on imported raw materials or parts that are not yet manufactured in the US, which may make such efforts uneconomical should the cost of goods include additional tariffs.

Additionally, the current implementation efforts have brought much uncertainty to the financial markets and to the economy as a whole. Many companies are delaying plans to hire and expand owing to this. Retaliatory tariffs by major trade partners are making the situation even worse This so called “macro disruption” is clearly counter-productive. I truly believe that you know this.

Also one cannot make trade deals with over 150 countries in short-order. And I am left with the impression that efforts of countries such as Israel to cooperate and collaborate by cancelling their own tariffs, have not yet received an adequate response from the President.

(I am a dual US-Israeli citizen and care deeply about this. I do not want my friends on both sides of the Atlantic to lose their jobs)

So I appeal to you, please do something to reinstate confidence. The current policy is erroneous. It is no shame to admit one’s mistakes and move on. Many successful enterprises are built on learning from failure and making the necessary changes. Please do something about it.

I hope this letter reaches you .

I wish you and all that read this note health and happiness over the Passover and Easter holiday season.

Sincerely

Norman Chait

Norman H. Chait, CFA
Managing Principal
Nardis Advisors LLC
nchait@nardisadvisors.com

Have questions about retiring in Israel? We’re having a series of webinars on this topic. We’re also publishing blogs on this subject.

JOIN the newsletter list here to stay informed.

Disclaimer

Nardis Advisors LLC (“Nardis”) is a Registered Investment Advisory Firm regulated by the U.S Securities and Exchange Commission in accordance and compliance with applicable securities laws and regulations. Registration does not imply a certain level of skill or training. Nardis does not render or offer to render personalized investment advice through this medium. The information provided herein is for informational purposes only and does not constitute financial, investment or legal advice. Investment advice can only be rendered after delivery of the Firm’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and Nardis.