Posted on 02/07/2013 6:00:38 AM PST by blam
DOUG KASS: 'I'm Getting The Summer Of 1987 Feeling' In The Market Right Now
Matthew Boesler
February 6, 2013, 6:06 PM
Seabreeze Partners portfolio manager Doug Kass has been sounding the alarm bells on the stock market for a while.
In his 2013 outlook published on January 9, Kass warned that the market would make its high for 2013 in the first two weeks of January.
That, of course, didn't happen, as stocks have continued to grind higher. Now, more and more people are talking about a sell-off than at any point during this rally that started in November, due to increasing signs of excessive bullishness among investors.
Kass was just on CNBC, and he made some rather dramatic comments.
"I'm getting the 'summer of 1987 feeling' in the U.S. equity market," Kass told CNBC, "which means we're headed for a sharp fall."
For those who don't remember the summer of 1987, here is what it looked like:
Wikimedia Commons
Kass also said that he thinks "fair market value of the S&P 500 is roughly 80 or 90 points lower."
This view has Kass at his highest net short position of the year.
Watch the full appearance below:
(Click to the site to see the video)
(Excerpt) Read more at businessinsider.com ...
Some Trader Has Made A Very Big Bet That Something Very Bad Will Happen Within The Next 60 Days
I remember the summer of ‘87 very well. Wall Street had guard the windows.
The market is levitating. You expect that when the Fed is pumping so much money, but you aren’t even seeing healthy corrections. The volume sucks so instead of calling it buying, I call it a lack of selling. We’re setting up for a doozy if the market doesn’t find some sanity soon.
>> Seabreeze Partners portfolio manager Doug Kass has been sounding the alarm bells on the stock market for a while.
So, as the saying goes, he has predicted seven of the last two downturns.
If he keeps it up, *eventually* he’s going to be correct.
I wish I could get a gig where I can be wrong 95% of the time and still be hailed as a guru for the one in twenty I get right. :-)
The market can be illogical longer than you can be liquid, BUT I am not buying into this rally.
“I wish I could get a gig where I can be wrong 95% of the time and still be hailed as a guru for the one in twenty I get right. :-)”
That “gig” is called baseball-—where you can be a 190 hitter (hit the ball only 19% of the time) and still cash in for millions.
LOL
All of a sudden we’re getting close to one-percent moves almost every day in the big averages, like a car starting to fishtail on the ice. We might be at the engineering definition of a system out of control.
Well on that note the market seems to finally have given up the ghost a bit. Hope the selloff will continue for a day or two.
I remember that.. black monday...
the day after was “Gold tuesday”..
we took every dime we could muster and put it in the stock market on tuesday.. turned a tidy little profit..
“If you can keep your head, while others about you are losing theirs, then, my son, will you be a man”
or...
“Buy when there’s blood in the streets, even if it’s your own.”
>> That “gig” is called baseball-—
The fact is, way back when I could have gone into pro ball as a career, instead of computer programming.
THere were only three things stopping me.
Can’t hit, can’t throw, can’t field.
But other than that...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.