This blog post originally appeared on RealMoney Silver on March 2 at 7:01 a.m. EST.

I am going to make today's opening missive brief, but my message is significant.

The reality is that over the past 12 months I have been far too cautious and dogmatic in my ursine outlook.

I moved too far off the reservation and stuck to my views even as cyclical economic conditions changed. (One doesn't have to look much beyond the ISM strength to support the statement that domestic growth has improved markedly.)

In support of my bearish investment view, I offered what I thought were a series of logical arguments on why my secular concerns would produce nontraditional challenges to the notion of a smooth and self-sustaining economic recovery that was the foundation of the bullish cabal's baseline case.

The fact is, the cyclical recovery in corporate profits has been so strong as to offset some of my concerns.

I am not a perma-bear -- I am in this game to make money for my investors and for RealMoolah's subscribers. Nevertheless, my musings over the past year might have led subscribers to conclude that I am indeed a perma-bear.

Nor am I bullish. Those nontraditional headwinds, frequently discussed on The Edge, are ever-present and are value-destructive and must be monitored closely as to their effect on the cyclical recovery. Moreover, I remain of the view that some portion of the recovery in the economy, in general, and in personal consumption expenditures, in specific, relates to "recession fatigue." It is important to recognize that numerous sectors in the economy are still operating well below long-term trend lines, and that, in all likelihood, this setup will support some further aggregate growth in the months ahead, even though the nontraditional threats remain a cloud over intermediate-term growth.

An excellent example of potential pent-up demand is the automobile market. February light vehicle sales came in at a 13.4 million seasonally adjusted annual rate, compared to 12.6 million in January 2011. Excluding the August 2009 "cash for clunkers" sales of 14.2 million, February's sales figure was the best since August 2008. Domestic light vehicle sales were reported at 10.35 million units compared to January's 9.59 million -- again the best monthly data, excluding "clunkers," in two and a half years.

From an historical perspective, sales are still meaningfully below their trend line and have a lot of room to grow -- in the years that led up to the last recession in 2008, light vehicles sales averaged close to 17 million units.

This same observation applies to other industries, with well-below-trend-line residential real estate growth the most conspicuous example of pent-up demand growth opportunity in the years ahead.

I can promise all of you that over the next few months, I will be more balanced in my writings, in my market view and in my individual recommendations, as I am respectful -- irrespective of yesterday's schmeissing -- of Mr. Market's more sanguine message and of the better-than-I-expected improvement in economic fundamentals.

In Jim "El Capitan" Cramer's Getting Back to Even, Jimmy wrote these kind words about me in his final "Acknowledgements" chapter:

Thank you to RealMoney's Doug Kass, for helping me call a once-in-a-generation bottom in March 2009.

As I watched Jim's observations on the " Be Afraid" segment on "Mad Money" last night -- as I do every night -- I heard his message loud and clear (as he heard mine almost two years ago) and took it to heart. That message is that there is no place for dogma ... especially when investing in the stock market. (This precept applies to both bullish and bearish thinking.)

As I mentioned previously, there are economic, profit and market challenges aplenty (that I have been chronicling on The Edge). And while Mr. Market might have some work to do on the downside in the near term, I for one will take advantage of opportunities that are presented in a correction ... on the long side.

Because when the facts change, so must I.

Conditions are not as bad as I had once feared.


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's daily trading diary, please click here.

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

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.