NEW YORK ( TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.Among the posts this past week were entries about the meaning of the payroll report and some Twitter nonsense. Please click here for information about subscribing to RealMoney Pro.
Productivity Data Signal a Mean Reversion in Profit Margins
Originally published on Thursday, Nov. 14 at 9:34 a.m. EDT. Year-over-year productivity growth in the third quarter of 2013 was zero compared to +0.2% in the second quarter of 2013. Productivity growth has slowed steadily over the past year, as year-over-year unit labor costs are now +1.9%. With profit margins peaking and unit labor costs accelerating a bit, the profits landscape is growing more challenging.
A Stunning Bull Market or the Height of Lunacy?
Originally published on Thursday, Nov. 14 at 7:50 a.m. EDT.
"Every now and then, markets behave like schoolchildren. They overreact; they run around like crazy. We know we're going to have tapering; we know we are living in an artificial state of excess liquidity right now. And it's happening because the economy is recovering." -- James Gorman, chairman of Morgan StanleyYesterday's market reversal was astonishing to me -- from bottom to top, the S&P futures climbed 28 handles. I write this because the rumor of a dovish Janet Yellen testimony (released at 4:30 p.m. EST yesterday) was the proximate cause of the reversal, and there was little question that the baton exchange from Helicopter Ben to Whirlybird Janet would be a smooth one, with similar objectives to adhere to the Fed's dual mandate.