This Day On The Street
Continue to site
ADVERTISEMENT
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

Capital Market Excess; Still Bullish on Bon-Ton: Best of Kass

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.

Last week, Kass wrote about capital market excess and Bon-Ton Stores.

Please click here for information about subscribing to RealMoney Pro.

A Not-So-Funny Thing Happened on the Way to Capital Market Excess

Originally published on Monday, Aug. 4, at 8:21 a.m. EDT

Something familiar,
Something peculiar,
Something for everyone:
A comedy tonight!

Something appealing,
Something appalling,
Something for everyone:
A comedy tonight!

Nothing with kings, nothing with crowns;
Bring on the lovers, liars and clowns!

Old situations,
New complications,
Nothing portentous or polite;
Tragedy tomorrow,
Comedy tonight!

Something convulsive,
Something repulsive,
Something for everyone:
A comedy tonight!

Something aesthetic,
Something frenetic,
Something for everyone:
A comedy tonight!

-- Music and lyrics by Stephen Sondheim, "Comedy Tonight" (from A Funny Thing Happened on the Way to the Forum)

Things are not always as they seem; skim milk masquerades as cream.

That was the lesson Pseudolus (portrayed by Zero Mostel, Nathan Lane, Whoopi Goldberg and many others) taught us in A Funny Thing Happened on the Way to the Forum, and it's the lesson we might be learning in the markets right now.

Normalization of profits, profit margins and interest rates will likely be a headwind to domestic economic growth and an albatross around the head of several investment asset classes in the period ahead.

Until recently, markets have willfully ignored the above in addition to rejecting the possible adverse investment consequences of expanding geopolitical risks in favor of, as my pal Mike Lewitt describes, "cold-blooded focus on central bank policy."

As I wrote several months ago, a mini Minsky moment might be at hand -- thanks to an exaggerated exploitation of portions of the equity and fixed-income markets and a growing attitude of complacency that has followed the exploitation of these asset classes.

The road to investment hell is paved with good intentions.

Check Out Our Best Services for Investors

Action Alerts PLUS

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
Quant Ratings

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
Stocks Under $10

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
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 15,972.06 -232.91 -1.44%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs