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):
About the author:
Mr. Huebscher is the founder and CEO of Advisor Perspectives, a web site and newsletter that provides investment strategy analysis for financial advisors and wealth managers. In 1982, he founded the investment software division of Thomson Financial, where he created the PORTIA product, a portfolio management system for institutional investors. In 1990, he founded Hub Data, a market data redistribution service, which he sold to Advent Software in 1998. He has also worked in the account aggregation field, as a consultant to both vendors and wealth managers. He is a graduate of the Harvard Business School (1982) and Connecticut College (1976).