Kevin O’Leary Turns Larry Kudlow’s Frown Upside Down With a Very Enthusiastic Rant on the Strength of the Economy: ‘I’m So Happy!’

Businessman Kevin O’Leary, Shark Tank’s Mr. Wonderful, joined Fox Business Network on Thursday and won host Larry Kudlow over with some enthusiastic optimism on the state of the U.S. economy.

“Well, as you know, Kevin, here’s a little hidden kernel. One reason I think stocks have done well is profits, which I call the mother’s milk of stocks. Companies have to be profitable in order to expand. If they don’t have profits, they’ve got to contract. Profits have surprised on the upside, along with interest rates, maybe surprising on the downside. What do you make of that combination? Might it last?” Kudlow asked to kick off the interview.

“I agree with you, Larry, but it’s better than that,” O’Leary began, adding:

It’s not just the S&P 500, which you just focused on. You know, this was driven by the magnificent seven tech stocks, but now it’s broadened out right through the S&P 500. And you saw a broad advance today. But it’s even better than that. The Russell 2000, American small-cap companies that represent 60% of job creation in America have really been performing. And I think that’s kind of an index of where we think policy is going to be in 14 months. Because if you thought you were going to get less regulation and interest rates, you’re going to be held here at five and a half percent terminal rate, car loans at seven and a half, mortgages just over six. We’re going to have a soft landing. And what does that affect most? It’s small-cap companies. And so it’s not people say, oh, let’s talk about the Dow, let’s talk about the S&P 500. If you own the Russell 2000 last six weeks, you’re killing it. So it’s the American economy starting to breathe. I’m very, very bullish and I’m not politics, baby. I’m policy. And so at least money thinks 50%. We’re going to get better regulatory environment. That’s what matters.

“Well, it does matter. So why should the Fed, if you have a good stock market and there’s no recession, at least not yet, I think there’s going to be a big slowdown next year. But put that aside. Why should the Fed be out there telling people they’re going to be slashing their policy target rates? It’s not necessary if the stock market’s booming. Why should the Fed go ahead and do it unless this is election year juicing of the economy? As my friend Kevin Hassett said, what do you think of that, Kevin?” Kudlow asked, trying to pour some cold water on the future of the economy.

“It could be, but I don’t see the Fed making a move in Q1. The market’s very optimistic,” O’Leary replied, before sounding off on what he sees as the strength of the economy:

It doesn’t have to, at five and a half percent terminal rate. The economy’s already adjusted. And even better news, Larry, disclosed today, January 18th, hearings on small business in America. I’ve always said this, where six out of ten jobs are created. Finally, Secretary of Commerce Gina Raimondo. Finally, I’m going to the Hill. I’m going to be banging the gong. You know, I’m your faithful reporter on the Hill every month. I’m going to meet with her on the 18th and her staff –bringing my analyst. Show me the money on the Chips and Science Act. Show me the money on the Inflation Reduction Act, $2 trillion going into the American economy. I think some of it’s going to get to small business. I’m going to get it there. I’m excited, Larry. We got the juice in printing money. We’ve got the Fed slowing down. We’ve got the soft landing. We’ve got broadening of the S&P 500 and the S&P 500 and obviously the Russell 2000. This is a fantastic holiday season. Rudolph the reindeer has arrived into all equity stocks. I’m so happy!

Kudlow, who frowned through much of O’Leary’s comments ended the segment on a positive note, saying, “I’m all for it. Just tell her to cut taxes and regulations that’ll help small businesses to lower taxes.”

Watch the clip above via Fox Business.