Doug Kass is "getting that summer of 1987 feeling," telling CNBC he's raising cash ahead of a...


Doug Kass is "getting that summer of 1987 feeling," telling CNBC he's raising cash ahead of a likely 80 or 90-point trimming in the S&P. "The secular challenges are unprecedented. We are in a period of slower growth. Ultimately, fundamentals rule stock prices," Kass warns, also expecting the U.S. economic recovery will prove weaker than expected.

Comments (5)
  • Uncle Pie
    , contributor
    Comments (4322) | Send Message
     
    Interest rates were in double digits and rising in the summer of '87. The institutions were depending on something called "portfolio insurance" which collapsed. Mom & Pop investors were cajoled by brokers into selling OEX straddles. These make money when there is no volatility. That strategy collapsed, too. There may be a drop in the market, but there isn't much resemblance to 1987 now.
    6 Feb 2013, 07:14 PM Reply Like
  • Robert Duval
    , contributor
    Comments (7852) | Send Message
     
    There is no comparison. And this is not a market call per se. It is a call for attention and to build ego. This is more important than trading correctly when running a fund.
    6 Feb 2013, 07:20 PM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
     
    Earnings quality is weak? Q1 was much better than Q4, particularly on the top line.
    6 Feb 2013, 08:54 PM Reply Like
  • holydawn
    , contributor
    Comments (146) | Send Message
     
    Everytime this guy gets a "feeling" the market seems to do the opposite. I LOVE that guys likes this are scaring people out of the market, more cheap shares for people who do their homework :)
    6 Feb 2013, 09:10 PM Reply Like
  • Topcat
    , contributor
    Comments (579) | Send Message
     
    Ride this bull market. Just use trailing STOPs.
    6 Feb 2013, 09:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs