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

Kass: My 'Fast Money' Recap

This column originally appeared on Real Money Pro at 9:10 a.m. EDT on Aug 23.

NEW YORK ( Real Money) -- Last night I appeared in a "Fast Money" segment with Melissa Lee and the gang to talk about my stock market top.

Let's go straight to last night's tape.

Melissa started by asking me if I was sticking with my market top call and whether I maintained my belief that the bullish days of summer were about over.

I said that I stood by my position. I remain concerned about the potential for a disappointing downturn in corporate profits, the likely further erosion in China's economy and a more rapid decline in the EU's economy than is generally anticipated. And then there is the fiscal cliff and the growing likelihood that President Obama will be elected (seen as a negative for businesses and capital markets).

We spent some time on China, the world's economic driver of growth. Several panelists felt that China would stimulate itself out of the doldrums.

I am less convinced and pointed out the profound weakness in the Chinese stock market, which has dramatically diverged from other world stock markets. It is important to remember that China's stock market was the first to drop in late 2007 and accurately presaged the stock market, financial and economic crisis of 2008.

Air China, I opined, may be in for a crash landing. I cited weak exports and imports reported 10 days ago and this week's drop in Japan's exports for July (down 8% year over year vs. expectations of less than a 3% decline as well as a near 12% percent drop into the Chinese market, which is Japan's largest trading partner).

My view continues to be that China's current growth and future growth path will be far worse than the consensus view.

I would note that last night the August HSBC flash manufacturing index for China was disappointing, at 47.8 compared to July's 49.3, and represented the lowest reading nine months. The official government index will be released on Aug. 31 and will likely fall below 50.0 (expansion) for the first time in 10 months.

Tim Seymour was more bullish as were the other members of the "Fast Money" gang, citing positive leadership changes in China, expected interest rate cuts and reduced reserve requirements.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

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
  • 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 serious 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

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


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Our Tweets

Partners Compare Online Brokers

Top Rated Stocks Top Rated Funds Top Rated ETFs