This Day On The Street
Continue to site
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

Kass: Market Loses Its Mojo

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADBE $79.20 0.00%
CA $28.32 0.00%
INTU $91.79 0.00%
MSFT $50.16 0.00%
ORCL $35.70 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs