Grey Owl Capital Management Q3 2023 Letter

Grey Owl Capital Management letter for the third quarter ended September 30, 2023.

"The problem with socialism is that you eventually run out of other people's money." - Margaret Thatcher Prime Minister of the United Kingdom 1979-1990

Dear Client,

The industrial economy continued to contract, yet the seemingly resilient (profligate?) consumer rebounded (from a very minor pause) and retail sales moved back into growth mode during the third quarter. All to the consternation of the economic punditry whose consensus has shifted from hard-landing, to soft-landing, now all the way to no-landing. Yet, what if this cycle is just somewhat different given the Covid shutdown, reopening, and massive government spending? More precisely, what if this cycle is different, elongated for sure, yet still very...