NEW YORK (RealMoneyPro) -- 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.
This past week, Kass sees money in munis, the Eurozone needing Greece and Google crowding Apple's cloud.
Feeling Good With Munis
Originally published on May 26 at 12:21 p.m. EDT
Over the last few weeks, I have posted that I have dramatically raised my exposure to closed-end municipal bond funds, taking advantage of price drops due to fears of an interest rate rise (which is certainly not happening today and I am not expecting in 2015).
It is important to note that many high-quality municipal bonds are now yielding 20% to 30% higher than Treasuries (on a pre-tax basis).
Over history, this has been a good time to own both munis and closed-end muni funds as the spread between taxable and nontaxable paper narrows.
Position: Long BTT, ETX, BKN, NQS, NPM, NAD, NMO, NMA, VPV, VCV,NQU, NPI, VGM and NRK.
Market Doesn't Inspire Confidence
Originally published on May 27 at 2:36 p.m. EDT
There is nothing today that changes my general view that we are in the process of making a broad top in equities.
The market that has no memory from day to day -- it's for now trendless, rangebound and provides an excellent setting for opportunistic traders willing to short the rips and cover the dips or conversely to buy the dips and sell the rips. (I have a nice P&L this year from my trading ventures.)
That said, this is still not a market to be confident about -- in either direction.
I confronted a confident and vociferous subscriber in the comments section yesterday who was most certain of his view and who said I was downright "doing a disservice to subscribers" by making long the Market Vectors Agribusiness ETF (MOO) my "trade of the week."
He wrote that he planned to short MOO (I am not sure what he is waiting for!) and already has a Deere (DE) short on -- despite the nice technical setup on both and despite the endorsement of Deere by the Oracle, among other reasons. (Today MOO is up slightly more in percentage terms than the S&P index and DE is +1%.)