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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Kass: Complacency Rules the Market

This backdrop of more liquidity could be viewed as a positive for the markets upon an eventual political resolution.

What to Do?

With the market likely influenced heavily by the machinations in Washington (and neither fundamentals nor technicals holding the key to investment success), I remain an opportunistic trader, not a member of the buy-and-hold crowd.

Looking beyond the current impasse, our trading and investment focus will soon be back on a lackluster top-/bottom-line and profit margin (70% above five-decade averages) outlook for large U.S. corporations (which has likely deteriorated as a result of the Washington follies), an already-seen 2013 expansion in P/E multiples (from less than 14x to more than 16x) and a still-scary and unresolved global geopolitical backdrop.

Frankly, I have too much respect for money to be deeply committed or to fake and pretend conviction (as I see many bulls and bears do) at today's market levels, given the overall uncertainties expressed in this morning's missive.

Reward (upside) is simply not particularly attractive relative to the risks (downside).


This column originally appeared on Real Money Pro at 7:54 a.m. EDT on Oct. 7.

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

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

Select the service that is right for you!

COMPARE ALL SERVICES
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
DOW 17,129.09 -2.88 -0.02%
S&P 500 1,998.05 -0.93 -0.05%
NASDAQ 4,553.03 +0.2710 0.01%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs