In that speech a week ago he swore that he's not anti-business. He said, "I actually believe that capitalism is the greatest force for prosperity and opportunity the world has ever known." You know, that sounds a lot like my opening line on The Kudlow Report, where for nine years I said "Free-market capitalism is the best path to prosperity." (Hah!)



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But the president relapsed in that very same speech, arguing that a minimum-wage hike, fair pay for women, paid leave, and clean energy continue to be his major growth policies. Not much free-market capitalism there.

He did mention corporate tax reform. But really he wants to raise big money to finance more government spending, by as much as $1 trillion.



Stock markets didn't necessarily sag on this big-government-driven Obamanomics. It's the same old, same old. But Obama did say on Tuesday, at yet another fundraiser, that Republicans are the party of "billionaires." Oops. He said this at the $26 million Greenwich, Conn., home of housing developer Rich Richman (I kid you not), who has a $10 billion company. Then, at a fundraiser in New York, he said, "If Republicans win . . . once again the interests of billionaires will come before the needs of the middle class." And who sponsored that event? Hedge-fund billionaires George Soros and Paul Tudor Jones.



Hypocrisy anyone?

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But the larger point I want to make is that we can put Obama aside for now.

Stocks are way overdue for a correction. In a volatile week, the Dow lost 466 points and the S&P 500 dropped 3.1 percent. But even with that, the broad index is up 3.1 percent year to date. So it's not a disaster. Corrections come and go.



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And I agree with Warren Buffett — not with his tax-hike wishes, but with his market call that investors should buy the dip. And not just because a Republican Senate is coming. And not just because a new Republican Congress will quickly put a Keystone Pipeline bill and a real corporate tax cut on Obama's desk. But also because the economic fundamentals look okay.



First, there's no recession in sight. Actually, economic growth is picking up from 2 percent to at least 2.5 percent. The positive Treasury yield curve — the difference between long- and short-term interest rates — is a key signal here.



Second, in the TIPS (Treasury inflation-protected securities) market, the so called break-even rates are 2 percent or less. So there's no inflation. Therefore, we're looking at better growth, low inflation, and a Fed that's ending quantitative easing this month.