The Best of Kass
While I continue to view the economy and markets as better positioned in 2012 than in 2011, I am a realist, and I recognize that investors have been wounded (and demoralized) and are likely to sit on their hands while they monitor the U.S. economy and wait for developments in Europe to stabilize.
Being anticipatory clearly has not paid off this month.
With macroeconomics heavily dictating microeconomics, we will have plenty of data to analyze in the next 24 hours, including (but not excluded to) PMIs in U.S., China and Europe.
I remain of the view that there is outstanding long-term value in the U.S. stock market today.
Stocks are remarkably inexpensive relative to interest rates, private market values, returns on invested capital and corporate profits.
I am less confident when that value will be unleashed.
I am approximately 45% net long (not including my short bond position).
As I wrote yesterday, I will recalculate my S&P 500 fair market value calculation after this week's PMIs are released.
At the time of publication, Kass had no positions in stocks mentioned.