Kass: Find Your Own Voice

Just like politics, the market's full of surprises, so trade small until volatility subsides.
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This blog post originally appeared on RealMoney Silver on Jan. 9 at 7:42 a.m. EST.

Not so fast -- for the markets or for politics.

Just

when it looked safe

to come out of the bunker, stocks reeled under the pressure of fresh news of economic weakness and increased financial stress. And the outlook for the 2008 Democratic presidential nomination, seemingly assured only 24 hours ago,

changed

equally dramatically overnight.

Maybe there is

crying

in

politics

, as the Obama express seemed to go off track, too -- at least temporarily.

Meanwhile, the administration and the

Fed

lack a sense of urgency,

fiddling

around while the U.S. economy burns. And it's not much better in Western Europe, as I have repeatedly

underscored

, as

Marks & Spencer

had its

largest daily drop in nearly 20 years

after reporting weak holiday sales and issuing poor guidance for 2008.

My last blog post on The Edge for

RealMoney Silver

yesterday highlighted the growing recessionary signs at

SuperValu

(SVU)

,

Walgreen

(WAG)

and

AT&T

(T) - Get Report

, which seemed to be the proximate course of the market's abrupt swoon lower yesterday afternoon. By contrast,

DuPont

(DD) - Get Report

just raised its 2008 view.

Jim "El Capitan" Cramer is correct. The Federal Reserve and the administration really know nothing.

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Be particularly skeptical with regard to those talking heads (strategists, investment managers and members of the fourth estate) that speak with bold authority and confidence as they "advise" us in the media. (That includes me!)

Find your own voice in this treacherous market. Trade/invest with smaller positions as volatility, as I

discussed

recently, is downright

ludicrous

.

It's the

hardest stock market to navigate ever

.

At the time of publication, Kass and/or his funds were short SuperValu and Walgreen, although holdings can change at any time.

Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Short Offshore Fund, Ltd.