This blog post originally appeared on RealMoney Silver on Nov. 20 at 7:55 a.m. EST.Time is no longer on the side of investors, as the markets are in free-fall. On Monday, I outlined eight conditions that could give rise to a sharp year-end rally.
- 1. Obama recommends a massive stimulus. 2. Obama lowers middle-class tax rates. 3. Obama announces his intention to introduce a $25 billion aid package to domestic automobile manufacturers. 4. The new Administration introduces large tax incentives for home ownership. 5. Obama immediately announces Cabinet appointees with the broadest experience and the highest credibility, from both within the two political parties (a team of rivals) and within industry. 6. The Fed cuts interest rates. 7. One or two high-profile hedge funds must fail. 8. The uptick rule is reinstated in order to reduce the negative influence of the quant funds.
- 1. Six trillion dollars of wealth has been lost in home prices over the last year and a half. 2. Eighteen trillion dollars of wealth has been lost in global equities in only seven weeks. 3. Deleveraging continues to restrict accessibility to credit. 4. Job losses are accelerating.
Know What You Own: Doug Kass mentions the S&P 500, and some of the components that trade on that index include Chevron ( CVX), Exxon Mobil ( XOM), General Electric ( GE), Johnson & Johnson ( JNJ), JPMorgan Chase ( JPM), Microsoft ( MSFT) and Procter & Gamble ( PG). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.
Doug Kass writes daily for RealMoney Silver , a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass' daily trading diary, please click here.