Positives and Negatives
The largest positive is that most now believe that the Fed and Treasury are pushing on a string as investment, economic and profit expectations have begun to adjust to reality:
- The Cassandras -- Nouriel Roubini has guest hosted CNBC's "Squawk Box" on three occasions in the past six weeks and is now touring the globe to standing-room-only crowds as an economic consultant! -- are now out in force.
- The discredited Polyannas -- even "Steady Eddy" Ken Fischer and many other permabull managers are suffering and are getting redeemed! -- are in hiding, however, nowhere to be seen, and, they, too, have turned their back to Goldilocks, as the NBER yesterday put an exclamation point on the U.S. recession.
- stability returns to the hedge fund community, as redemptions slow down, some large hedge funds fail, and money is re-circulated to other investment managers;
- the slope of the domestic economy's downturn is better understood, as the possible recovery is seen with better clarity; and
- the volatility in the capital markets diminishes.
Know What You Own: Doug Kass alludes to the turmoil in the financial sector, and some of the survivors in this field include JPMorgan Chase (JPM - Get Report), Wells Fargo (WFC - Get Report), Bank of America (BAC - Get Report), Citigroup (C - Get Report), Royal Bank of Canada (RY - Get Report), Bank of New York Mellon (BK - Get Report) and Toronto-Dominion Bank (TD - Get Report). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.
Doug Kass writes daily for RealMoney Silver , a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass' daily trading diary, please click here.