NEW YORK (TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.
Last week, Kass wrote about the FOMC statement and his exchange traded fund investments.
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Fed Unlikely to Rock the Boat
"I am a huge believer that the economy has slowed again -- it's been stop-start repeatedly -- and that the hiring numbers, after hitting their stride not that long ago, now seem bogged down by some force or forces -- European weakness, Affordable Care Act? -- that nobody's been able to pin down beyond anecdotal musings."
-- Jim "El Capitan" Cramer, Is This a Stupid Market?
Like noses, everyone has a view of what the Federal Reserve will communicate today in its policy-setting committee meeting.
I am uncertain of what the Fed will say today, but I do have a view (as Jim Cramer expresses in his opening missive today) that the domestic economy's fundamentals are weaker than many believe.
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Here are my reasons:
• Away from the U.S., economic activity is weakening. Italy, France, Spain, Russia and Japan are in recession. European real gross domestic product growth is perilously close to zero and a Japanese-style deflation is threatening the region. China's economic growth is decelerating.
• The European Central Bank faces the challenge of structural issues. The ECB may be running out of gimmicks and could be unable to spur growth in the quarters ahead. (Indeed, any meaningful reversal in sovereign debt yields could crimp European Union economic growth and develop into broadening systemic risks).