Wall Street Plays Oldies

Editor's note: This column by Doug Kass is a special bonus for TheStreet.com and RealMoney readers. It first appeared on Street Insight on Aug. 21 at 9:02 a.m. EDT. To sign up for Street Insight, where you can read Kass' commentary in real time, please click here.

A cooling economy -- along with lower interest rates and energy prices -- has served to buoy markets in a "Summer Love In" for stocks.

Arguably, the advance has now ushered in a sense of conformity. Of course, the ever-present risk of a contrarian (read: bear!) is that the past literally does repeat itself and that the crowd outsmarts the remnant. And while historical relationships almost always hold true as a prologue to tomorrow, it does not say which lesson to apply and when.

Rising geopolitical risks (and Middle East instability) coupled with the likely broad ramifications of a hard landing in housing have all but been ignored. The rise off the recent lows has been impressive, emboldening previously worried investors who have increasingly begun to worship at the "Altar of Momentum." ...