The Best of Kass

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In the third quarter Apple announces three new products in 2013 (iTV, iMed and iHomes). iTV is a yawner, but the later two are revolutionary product additions.

With iMed, Apple enters the medical information market, providing a platform for the medical field to keep, store and transfer records real time. This expands the use of iPads exponentially.

Also introduced is the iHomes program, an iTunes-like software to control all electrical (and some non-electrical, like plumbing) elements in a home remotely. The software receives rave reviews from Mossberg, after which Apple announces it will not license the software for use on Android devices. (Google shares drop 60 points on the announcement.)

At the time of publication, Kass had no positions in stocks mentioned.


Out of Short Bond Position
Originally published on Thursday, Jan. 3 at 11:58 a.m. EST.

  • My long-term bearish bond thesis remains intact, but I believe it will be delayed in the early part of 2013.
  • It is with great reluctance that I am reversing (at least for the next six months) my view on the bond market.

    That said, my long-term thesis in shorting the bond market remains intact, but I believe it will be delayed in the early part of 2013.

    So, as of now, I am no longer in my short bond position ProShares UltraShort 20+ Year Treasury (TBT) .

    I was going to comment on this in tomorrow's opening missive, but my friend/buddy/pal Gary Kaminsky is interviewing Double Line's Jeff Gunlach on CNBC now, and Jeff is commenting on the fixed-income market.

    This changed view will be (much) discussed further in Monday's 15 surprises for 2013 column.

    Suffice to write (as I will expand upon tomorrow morning), from my perch (and this is a contrarian view), U.S. economic growth is decelerating at a time in which the yield on the 10-year U.S. note has risen from 1.60% (a few weeks ago) to 1.87% today. (This view is similar to the view just expressed by Gundlach.)

    At the time of publication, Kass had no positions in securities mentioned .


    Buy the Rumor, Sell the News
    Originally published on Thursday, Jan. 3 at 10:26 a.m. EST.

  • I am out of my FXI long.
  • Over the past two months, the risk/reward on the Chinese market has moved from very favorable to neutral, as the concerns about a hard landing in China have been abandoned.

    We bought the weakness, and we will sell the strength, as we do not share the view that this is the start of a new bull market leg for the region.

    I am out of my iShares FTSE/Xinhua China 25 Index Fund (FXI) long.

    At the time of publication, Kass had no positions in securities mentioned.