The Best of Kass
Among his posts this week, Kass wrote how the markets are close to a panic stage, why he is more intellectually more bullish than his portfolio would indicate, and why Bank of America shares should stage a breakout.
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Discipline Trumps Conviction
Originally published on Friday, June 1 at 2:27 p.m. EDT.
Dark Helmet (Rick Moranis): What's the matter, Colonel Sandurz? CHICKEN?
We are close to a panic stage in the markets, as the Nasdaq and S&P 500 approach 3% drops.
Normally, I would be a buyer -- at the very least take a SPDR S&P 500 ETF Trust(SPY) rental) -- but there is nothing normal about this market.
Net-net, I added only about 1% more long exposure (still in the mid-30%), which, to me, is crazy considering the developing values. But there is so much I don't understand in this selloff that I am trying to remain disciplined.
If I was smart -- and I haven't been lately -- I would fade my remarks and buy. But, color me chicken.
At the time of publication, Kass had no positions in stocks mentioned.
A Contrarian's Nightmare
Originally published on Thursday, May 31 at 11:57 a.m. EDT.
I am currently about 35% net long (excluding my large short position in bonds).
As expressed both in my opening missives on Tuesday and Wednesday, I am intellectually far more bullish than expressed in my portfolio exposure, but, at the same time, I am mindful of the message of the stock market, the message of the bond market -- what does a 1.55% 10-year yield imply for growth? -- and the technical damage that has been inflicted in the world's equity markets.