The Best of Kass
Among his posts this past week, Kass explained why he's in the same Apple basket as David Einhorn, discussed Dennis Gartman's recent "all-out" investment call, and reiterated his explanation of the importance of good defense in investing.
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Einhorn on Apple
Originally published on Friday, Feb. 22 at 12:49 p.m. EST.
- His analysis and the potential unlocking of value are some reasons why I took a long rental in the shares.
Every shareholder and prospective shareholder should read David's rationale for the iPrefs.
This analysis and potential unlocking of value (vis-a-vis some more traditional techniques) are some reasons why I took a long rental in the shares.
At the time of publication, Kass was long AAPL.
Gartman Says That the Game Has Changed
Originally published on Friday, Feb. 22 at 12:02 p.m. EST.
- Time will tell whether Dennis' move from "all in" to "all out" will prove prescient.
Yes, today I changed my opinion on stocks. I had been relentlessly bullish since last October. I continued to be bullish in November. I continued to be bullish in December. I bought the gap up in January.... And after yesterday's movement, it had very little to do with what the Fed had to say because markets were moving way before the market moved down. The copper market was speaking to me. Sequestration was speaking to me. And at the end of the day, we had reversals in all the indices.... Cash is not a bad thing to be hold. I think this could be a very serious correction, at least 7%, and I'm not one to sit for 7% corrections.
-- Dennis Gartman on CNBC's " Fast Money Halftime Report "
Sir Dennis Gartman has been taking some flack today for his "all out" call on CNBC yesterday. ( Here is the video of his appearance.)
Time will tell whether Dennis' move from "all in" to "all out" will prove to be prescient.
But there is a lesson to Dennis' call for all of us: There are many ways to skin the (market's) cat.
As most recognize by now, I view most technical analysis as voodoo. Fundamentals dominate my investment process, followed (to a far lesser degree) by valuation and sentiment input.
Although Dennis' technical approach to the markets (that the tape's action tells a tale and should be heeded, sometimes even posthaste) is markedly different than my fundamental approach, what we do know is that Dennis holds rigidly to his trading process -- and adhering consistently to a trading or investment process is a good lesson for all investors and traders.