Shorting the Markets; Long JPMorgan: Doug Kass' Views

NEW YORK (Real MoneyPros) -- Doug Kass shares his views every day on RealMoneyPros. Click here for a real-time look at his insights and musings.

 


As the Rubber Band Gets Stretched

Posted at 10:13 AM EDT on Friday, May 15, 2015

The "Bad News Is Good News" feature of the equity market is getting too entrenched and accepted in investors' and traders' mindsets.

I raised my short exposure further this morning based on the ever-widening chasm between financial asset prices (higher) and the real economy (disappointing.)

The chasm has gotten so large that I am prepared to take some more short-term pain for long-term gain.

Position: Short SPY, QQQ
 
Must Read: Expect September Fed Rate Hike, U.S. Economic Slowdown Is Over


JPM Still a Best Idea

Posted at 7:50 AM EDT on Thursday, May 14, 2015

Yesterday, I spent an hour updating my analysis of JPMorgan (JPM).

JPMorgan's shares have more doubled the return of the large bank stock index over the last three months.

Nevertheless, I feel strongly that (1) JPM is among the best positioned money center banks, (2) the bank has the best scale of any major bank and (3) consensus earnings estimates are a bit too low for 2015 and 2016 (with the source of the potential beat in investment banking, strength in the commercial bank and in real estate),

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