This column, which is the second in a series of three, first appeared on Real Money Pro on Jan. 6.

Surprise No. 6: Volkswagen AG acquires Tesla Motors.



Strategy: Buy Tesla Motors (TSLA) common and calls.

Surprise No. 7: Twitter's shares fall by 70% as a disruptive competitor appears.

Strategy: Short Twitter (TWTR) common and buy TWTR puts.

Surprise No. 8: Buffett names successor.

Against all of his previous protestations, Berkshire Hathaway's (BRK.A/BRK.B) Warren Buffett announces the name of his successor.

Strategy: None.

Surprise No. 9: Bitcoin becomes a roller coaster.

Bitcoin scores acceptance as a virtual currency from Amazon and eBay (EBAY) in early 2014 and climbs to over $7,500 in value by midyear.

The Winklevoss twins make nearly $350 million on paper from their investment in bitcoin. (Boca Biff, also mega long bitcoin, bids for the Boca Raton Hotel, which is across the street from his home in Boca Raton, Florida.)

Just at the time that bitcoin begins gaining legitimacy as a currency, improprieties in the calculation of the supply of bitcoins are found. A fraudulent double-spend attack wreaks havoc and significantly disrupts the bitcoin market. At the same time, a selfish miner (who does not release solutions to solved cryptopuzzles and minds a branch in secret) successfully attacks the bitcoin system and gains control of over 55% of the total network hashing power.

The value of bitcoin falls by nearly 70% in a two-week period and closes back under $1,000 by year-end.

Several momentum-based hedge funds that got long fail spectacularly.

Strategy: Buy and then short bitcoins

Surprise No. 10: The Republican Party gains control of the Senate and maintains control of the House.

As a result, President Obama becomes a lame duck president who is unable to launch any new policy initiatives.

The S&P 500 soars to over 2100.

Strategy: Buy everything.

At the time of publication, Doug Kass was long AAMC, C, TLT, BAB, BTT, ETX, BKN, NQS, NPM, NAD, NMO, NMA, VPV, VCV, NQU, NPI, NRK and MONI.L; short SBUX, BRK.B, QQQ and SPY, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc.

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