Kass: Market Bottom Call (Part Deux)
Three years ago, cash was not king, the buying power of private equity dominated the investment landscape, and no takeover (regardless of size) was impossible. Endowments, pension plans, banks and hedge funds jumped headlong into the leveraged world of private equity.
Even two years ago, mutual and hedge funds were enthusiastically invested in equities (especially of a materials, commodities and energy kind) as the newest paradigm of economic decoupling gained credence.
Today, cash (and liquidity) is back on the throne as king, as the great unwind of debt and the liquidation of overlevered investments gains momentum as the hedge fund industry implodes further.Of course, the moral of yesterday's "In the Land of Chicken Little" story is not to believe everything you are told. Take the advice of the Johnny-come-lately Chicken Littles if you will, but trust me, they will not anticipate recovery, nor will they (like the cagey fox) participate in feasting on the developing and unprecedented values. Attractive valuations, a negative sentiment extreme and early signs (and expectations) of economic stabilization are moving closer to reality. The sky is not falling as value is on our doorstep and dinner is being served!
How you can survive -- and even prosper -- in a rocky midyear market? Get the "best ideas to make real money" from Jim Cramer, Doug Kass, Helene Meisler and other RealMoney experts at our May 2 Investment Conference. Learn more here.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV