The Best of Kass
Among his posts this past week, Kass explained why he has become a bull and discussed the possibility of a delay in the Treasury's sale of its AIG shares.
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That's Damn Right!
Originally published on Friday, Nov. 16 at 2:18 p.m. EST.
It was a quick segment on "Fast Money Halftime Report," which concluded in my response to Judge Wapner's question regarding my bullish turn: "Yes, that's damn right!"
Judge first asked me about Apple and then about the markets.
On Apple, I suggested, as Joe did, that the precipitous drop in the shares this week was likely in part a function of margin calls from hedge funds that had outsized positions in the stock (some of them that I know have a more than 15% weighting). Apple, I suggested, was a leveraged play on the capital market, and as stocks fell, it became an ATM (a source of funds and liquidity).
On the market, I emphasized that I had turned and am now bullish, that an opportunity perhaps similar (though not as extreme) to that in the summers of 2010 and 2011 could be at hand. (I appeared on those two occasions on "Fast Money" as well and communicated those opportunities.)
I specifically said the fiscal cliff would be considerably whittled away from expectations (to $150 billion-$225 billion) and that I am now feeling more confident after hearing the conciliatory remarks from our leaders today.
The market's fears of a fiscal cliff are overblown.
One positive thing that has been ignored is that an aide to the president said late in the day on Thursday that only $1 trillion of tax revenue would be sought -- the president had previously said he was seeking $1.6 trillion of tax revenue.
With a compromise, the business sector is pent-up, not spent-up -- it will step up hirings/spending, and the underlying rate of growth in core economic activity could surprise to the upside.
At the time of publication, Kass was long AAPL .
More on AIG
Originally published on Thursday, Nov. 15 at 1:09 p.m. EST.