This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kass: Market Loses Its Mojo

Stocks in this article: MSFT SAY ORCL

After a 20-year consumption binge, an unrealistic dependency on asset appreciation in home and stock prices and what Oaktree's Howard Marks terms "a willingness" to take on risk at all levels of our economy, the future is one of higher savings and a lower standard of living, one of reduced expectations and, in all likelihood, substandard investment returns.

It is not the end of the world, but it is a different world.

"The two most powerful warriors are patience and time."

-- Leo Tolstoy

The heavy economic and policy lifting lies ahead.

The "great unwind" of debt and the toxic holes in the capital of our financial intermediaries, coupled with a "cooked" U.S. consumer whose leverage was at an all- time high going into the downturn and whose net worths have been devastated by lower home and stock prices, pose as powerful headwinds and suggest that there is no quick fix.

As investors, we are now on heightened alert as we no longer should consider what might go right with our investments, in our asset classes and/or with the companies in which we research/invest. Our first task, now and for the rest of the year, is to consider what might go wrong.

At any moment, a reasonably strong rally could develop. Indeed, the downbeat tone of this very column could be reason enough to be more optimistic and to conclude that negativity has been materially discounted in share prices.

My hope and the hope for the markets remain centered around the new administration's announcement of a comprehensive and coherent approach to cleaning up our banks' toxic assets, arresting foreclosures and successfully unclogging the transmission of credit. I suspect that the deliveries of such proposals are close at hand and, depending on their scope and acceptance, may represent a positive for the oversold stock market.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs