Seth Klarman Image by The Israel Project

Seth Klarman, the billionaire financier whose advice books sell for thousands of dollars on the Internet, is here to the burst the bubble of his fellow investors: Don’t get your hopes up about a Trump economic boom.

Most concerning for Klarman is the new president’s personality. “The erratic tendencies and overconfidence in his own wisdom and judgment that Donald Trump has demonstrated to date are inconsistent with strong leadership and sound decision-making,” he added.

“Exuberant investors have focused on the potential benefits of stimulative tax cuts, while mostly ignoring the risks from America-first protectionism and the erection of new trade barriers,” Klarman, head of the Boston-headquartered Baupost group, wrote in a letter obtained by The New York Times, warning that President Donald Trump’s opposition to free trade could hinder growth of the economy and the stock market.

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Investor Warren Buffet, also known as the “Sage of Omaha,” writes similar letters to his investors.

He also warned that tax cuts might swell the federal government’s debt.

Klarman, cofounder of The Times of Israel, usually sides with Republicans and right-wing causes, but he opposed Trump’s election, giving the maximum donation to rival Hillary Clinton, who he said was more qualified to lead the country.

Contact Daniel J. Solomon at [email protected] or on Twitter @DanielJSolomon

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