Investing Opinion

Kass: Staying Practical

 

  1. There are renewed signs that my baseline expectation for a disappointing 2010 economy is rising in probability.
  2. I see some dissipation in the strong price momentum of the U.S. stock market.

While we have recently seen evidence of weakening economic activity in housing, durable goods and in the jobs market, we have not yet seen a break in the strength of the U.S. stock market.

So, for now, I act like Ralph Wanger's zebras that are not in the middle of the herd but that are looking for grass by cautiously moving toward the outside of the herd.

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's daily trading diary, please click here.

>To order reprints of this article, click here: Reprints

At the time of publication, Kass and/or his funds had no positions in the stocks mentioned, although holdings can change at any time.

Doug Kass is the general partner Seabreeze Partners Long/Short LP and Seabreeze Partners Long/Short Offshore LP. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

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