Getting the Most From Street Insight

Here are my tips on how to use different sections of Street Insight. I hope this helps you make the most of the site, our contributors, and their trading and investment ideas.

So, How Does The Edge Give You an Edge?
Many writers contribute to The Edge, but Doug Kass remains the anchor for this diary on stocks and investing. Since Doug is a dedicated short seller, the opportunities he seeks are different from those of the average investor. For example, Jim Cramer has said that there is always a bull market somewhere. Doug Kass, however, revels in his role as the "anti-Cramer" who believes that there is always a bear market somewhere. To each his own.

Bearish Opportunities
Doug has never hidden the fact that he is a short seller, and he frequently has short positions in stocks he writes about. Yet some subscribers don't seem to understand why Doug has remained bearish during a long bull market. Quite simply: This is his job! To expect him to do otherwise would be to violate his fiduciary duty to clients. Doug is not advocating that your entire portfolio should be short the U.S. equity market; rather he is pointing out that there are bearish opportunities in any market environment.

Highlighting Risks
But what if you are bullish on stocks? For investors who concentrate on the long side of U.S. equities, how does The Edge give you an edge? By showing you the other side of the trade. There is always someone selling what you are buying, and it helps to understand that person's thinking. Perhaps there are risks that you weren't aware of. Perhaps expectations are out of sync with reality. Or perhaps a security is already priced to perfection. It pays to know.

Once you've evaluated the pros and cons, you make your own decision. If anything, you should have more conviction in your long ideas if you've considered all the bearish angles. This is just one of the key ways that The Edge gives you an edge.

Following up on Ideas
Jim Cramer has a highly developed feel for the long side of the equity market. Likewise, Doug has a finely developed feel for the short side of the market: Fact and rumor, pending deals, broker conflicts and the lastest word from trading desks. But to try and trade directly off of Doug's ideas is not always wise. Other than the occasional Kass Katch, Doug cannot guarantee updates when he trades many positions for many clients. Like our other contributors, Doug must put his asset management clients first. Our contributors do not work exclusively as writers; their main jobs are in portfolio management. This is what makes their writing so compelling. Granted, it is a two-edged sword, since they must put their asset management clients first. This may take them out of the picture unexpectedly, and it may mean that they cannot update an idea as fast as they would like. This is true not only for Doug Kass on The Edge, but also for many of our contributors on Market Insight. For people who are looking to follow someone's investment ideas, Street Insight has columns that fit this need better.