Here are Doug Kass' top thoughts on some of the biggest stories of the week over on RealMoney Pro.
Tuesday's market advance is likely a result of some talk that the Republican party's tax reform policies may be more easily enacted than previously thought.
Some are citing a Politico story to this effect.
If this is the market catalyst, I expect investors to be disappointed:
* Tax reform is historically a far more difficult endeavor than health care (which was a dud).
* The Republicans and Democrats have never had such hatred and participated in such partisan battles as they do today.
* We are quickly moving towards the 2018 election cycle which will exacerbate the above partisanship.
* If there is a compromise and the statutory corporate tax rate goes into the mid to high 20%s this will not have a material impact on the S&P Index -- as most companies have a subpar 25% effective tax rate. Moreover, as I have argued, the largest companies, have a far lower effective tax rate (Apple (AAPL) - Get Report , Alphabet (GOOGL) - Get Report , Facebook (FB) - Get Report , etc.)
Position: Long SDS; Short AAPL small SPY.
Originally published Aug. 22 at 10:52 a.m. EDT.
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