Seabreeze’s Doug Kass made a bullish call on the stock market tonight. Kass thinks the market has seen its low for the year, echoing his call last year that the market saw its “generational low” in March, 2009.
He thinks the stocks are totally disconnected from the fundamentals and attractive as compared with other risk assets.
He sees the recent economic data that has caused the market decline still suggest economic growth better than 1%.
He sees the S&P 500 trading at 11.5 times next year’s earning but the Treasury bond trading at a much higher multiplier.
He recommends investors pick their investments among the technology stocks for their high beta.
Watch the video (Kass appears about 10 minutes into the video):
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I really wouldn't put too much stock in anything Kass says. He missed the entire rally up last year after bailing out in the Summer of 09. Read his twitter account, he's pretty much like a coin flip.
Well, now we know why Dougie is Cramer's favorite bear. He's a BINO.
I like a lot of what Kass says, but I think he's just wrong here. I remember he said bought Lehman while that was still around, so he can make colossal errors like everyone else. He never mentioned his Lehman buy again after the bankruptcy, however.
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